Investors rotated out of tech, and Taiwan Semiconductor fell despite a beat
Equal-weight and small-stock funds beat the S&P 500 fund, gold miners jumped, and Treasury prices rose even after wholesale prices posted their biggest monthly gain since March 2022.
Key takeaways
Equal-weight and small-stock funds rose on Thursday while chip shares fell. Investopedia's closing recap called it a rotation out of tech stocks.
The Invesco S&P 500 Equal Weight ETF RSP and the iShares Russell 2000 ETF IWM each rose 1.4%, 1.1 percentage points ahead of the 0.3% gain in the State Street SPDR S&P 500 ETF SPY. The State Street SPDR Dow Jones Industrial Average ETF Trust DIA rose 1.1%. The Invesco QQQ Trust, Series 1 QQQ slipped 0.1%.
Chip shares fell for a second session. The iShares Semiconductor ETF SOXX fell 0.9% after a 4.5% drop on Wednesday.
Equal-weight and small-caps led as chips and Nasdaq slipped
Taiwan Semiconductor Manufacturing reported third-quarter earnings of $4.60 a share, above a $4.45 estimate. Its U.S.-listed shares fell 1.8%. Investopedia said they were caught in the tech selloff.
Dell Technologies fell 6.8%. Barron's reported that the shares were tumbling as analysts said higher memory prices, not an enterprise breakthrough in artificial intelligence, were driving the company's hardware growth.
Bonds rallied even after wholesale prices surged
The U.S. Bureau of Labor Statistics said Thursday morning that the producer price index for final demand rose 1.3% in September, after 0.5% in August. That was the largest monthly advance since a 1.7% increase in March 2022. From a year earlier, producer prices were up 6.3%, the biggest 12-month increase since a 6.4% rise in December 2022.
The iShares 20+ Year Treasury Bond ETF TLT gained 1.4%, and the iShares 7-10 Year Treasury Bond ETF IEF gained 0.7%. The 10-year Treasury yield ended at 5.1%. The Simplify Interest Rate Hedge ETF PFIX, built to gain when long-term rates rise, fell 1.6%.
The Wall Street Journal reported that yields fell back as the tech selloff sent investors toward safer assets, reversing an initial jump after Wednesday's inflation data.
Gold-mining funds jumped
Gold futures were up 2.0% in late afternoon trading, and SPDR Gold Shares GLD rose 1.8% in the regular session. The Sprott Gold Miners ETF SGDM rose 5.3%, and the VanEck Gold Miners ETF GDX rose 4.3%. Newmont, the largest holding in GDX, rose 3.8%.
Sale talks lifted International Paper, and a launch delay hit Rocket Lab
International Paper rose 6.9% after confirming it is in early talks to sell its packaging business in Europe, the Middle East and Africa.
Rocket Lab fell 6.6% after saying Wednesday that the first flight of its Neutron rocket would slip into 2027.
ETFs in this story
Frequently asked questions
Why did Taiwan Semiconductor fall after beating estimates?
Its U.S.-listed shares fell 1.8%, and Investopedia said they were caught in the tech selloff.
Which funds gained as investors rotated out of tech?
The Invesco S&P 500 Equal Weight ETF and the iShares Russell 2000 ETF each rose 1.4%, 1.1 percentage points ahead of the State Street SPDR S&P 500 ETF.
Why did Treasury prices rise after wholesale prices jumped?
The Wall Street Journal reported yields fell as the tech selloff sent investors toward safer assets, and the iShares 20+ Year Treasury Bond ETF gained 1.4%.
How much did gold-mining funds rise?
The Sprott Gold Miners ETF rose 5.3% and the VanEck Gold Miners ETF rose 4.3% as gold futures gained.
