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Wall Street Ends Flat as Small Caps Shine and Chip Stocks Extend Gains

Rising Treasury yields alongside credit card cap worries constrained risk appetite.

Overview

  • The S&P 500 slipped 0.1% Friday and fell about 0.4% for the week, with major indexes holding near record levels as trading turned choppy before the long weekend.
  • Semiconductor shares advanced again after TSMC projected stronger Q1 sales and raised its 2026 capital spending plan to $52 billion–$56 billion.
  • The Russell 2000 notched another record close and rose roughly 2% on the week, underscoring a rotation toward small and mid-cap stocks.
  • Weekly initial jobless claims dropped to 198,000, while Fed officials Raphael Bostic and Jeff Schmid signaled a preference to keep policy restrictive, lifting Treasury yields.
  • Financial stocks faced pressure tied to President Trump’s proposed one-year 10% cap on credit card interest rates, as investors stayed cautious with earnings season ramping up.