{"id":71910,"date":"2026-09-17T12:07:14","date_gmt":"2026-09-17T16:07:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-and-small-caps-lead-surge-as-markets-react-to-federal-reserve-shift\/71910\/"},"modified":"2026-09-17T12:07:14","modified_gmt":"2026-09-17T16:07:14","slug":"tech-and-small-caps-lead-surge-as-markets-react-to-federal-reserve-shift","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-and-small-caps-lead-surge-as-markets-react-to-federal-reserve-shift\/71910\/","title":{"rendered":"Tech and Small Caps Lead Surge as Markets React to Federal Reserve Shift"},"content":{"rendered":"<p>U.S. equity markets experienced a broad-based rally during midday trading on Thursday, September 17th, 2026, as investors continued to digest the implications of the Federal Reserve&#39;s latest policy maneuvers. Momentum shifted decidedly toward growth-oriented sectors and small-cap stocks, reflecting a &quot;risk-on&quot; sentiment that has permeated Wall Street following yesterday&#39;s pivotal interest rate decision.<\/p>\n<h2>Midday Market Performance<\/h2>\n<p>As of midday, the technology-heavy Nasdaq Composite, tracked by the Invesco QQQ Trust (<a href=\"\/stock\/QQQ\">QQQ<\/a>), is leading the charge with a robust gain of 1.62%. This outperformance is mirrored by the iShares Russell 2000 ETF (<a href=\"\/stock\/IWM\">IWM<\/a>), which rose 1.14%, signaling that investors are rotating back into smaller, rate-sensitive companies.<\/p>\n<p>The broader market is also showing significant strength. The State Street SPDR <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> ETF Trust (<a href=\"\/stock\/SPY\">SPY<\/a>) is up 1.07%, while the blue-chip <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average, represented by the State Street SPDR Dow Jones Industrial Average ETF Trust (<a href=\"\/stock\/DIA\">DIA<\/a>), has climbed 0.65%. Market volatility has retreated sharply, with the iPath Series B S&amp;P 500 VIX Short-Term Futures ETN (<a href=\"\/stock\/VXX\">VXX<\/a>) falling 3.34%, indicating a decrease in investor anxiety.<\/p>\n<h2>Sector Highlights and Semiconductor Strength<\/h2>\n<p>The semiconductor industry is providing a massive tailwind for the indices today. The VanEck Semiconductor ETF (<a href=\"\/stock\/SMH\">SMH<\/a>) surged 2.62%, fueled by significant gains in industry leaders. <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) saw its shares rise 2.1% on high trading volume, while <a href=\"https:\/\/stockmarketwatch.com\/stock\/MU\" data-internallinksmanager029f6b8e52c=\"20\" title=\"Stock: MU\">Micron<\/a> Technology, Inc. (<a href=\"\/stock\/MU\">MU<\/a>) jumped 3.0% as analysts weigh in on the long-term demand for memory chips in the A.I. era.<\/p>\n<p>Precious metals are also seeing a dramatic spike today. The iShares <a href=\"https:\/\/stockmarketwatch.com\/metal\/silver\" data-internallinksmanager029f6b8e52c=\"5\" title=\"silver price today\">Silver<\/a> Trust (<a href=\"\/stock\/SLV\">SLV<\/a>) soared 4.21%, and the SPDR <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> Trust (<a href=\"\/stock\/GLD\">GLD<\/a>) rose 2.23%. This movement suggests that while investors are buying stocks, they are also hedging against potential long-term inflationary pressures or currency fluctuations.<\/p>\n<h2>Corporate News and Earnings<\/h2>\n<p>In corporate developments, Darden Restaurants, Inc. (<a href=\"\/stock\/DRI\">DRI<\/a>) reported its Q1 2027 earnings before the opening bell. The company, which owns Olive Garden, is being closely watched as a bellwether for consumer discretionary spending.<\/p>\n<p>Looking ahead to the post-market session, FedEx Corporation (<a href=\"\/stock\/FDX\">FDX<\/a>) is scheduled to release its Q1 2027 results. Investors will be scrutinizing the logistics giant&#39;s report for insights into global trade volumes and the health of the e-commerce sector. Additionally, Lennar Corporation Class A (<a href=\"\/stock\/LEN\">LEN<\/a>) is expected to report its Q3 2026 earnings after the close, providing a critical update on the state of the housing market in a changing interest rate environment.<\/p>\n<p>Among individual movers, Aethlon Medical Inc (<a href=\"\/stock\/AEMD\">AEMD<\/a>) witnessed an extraordinary surge of 495% on massive volume, drawing significant retail interest. Conversely, Longeveron Inc. (<a href=\"\/stock\/LGVN\">LGVN<\/a>) struggled, with shares dropping 51.7%.<\/p>\n<h2>Upcoming Market Events<\/h2>\n<p>The market&#39;s focus remains on the Federal Reserve&#39;s path forward. With the initial rate cut now in the rearview mirror, traders are looking toward upcoming economic data to determine the pace of future easing. Key reports on jobless claims and manufacturing activity are expected to influence sentiment in the coming days. Furthermore, the retail sector will be in the spotlight next week as Costco Wholesale Corp (<a href=\"\/stock\/COST\">COST<\/a>) and Nike, Inc. (<a href=\"\/stock\/NKE\">NKE<\/a>) prepare to report their quarterly results on September 24th.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. equity markets experienced a broad-based rally during midday trading on Thursday, September 17th, 2026, as investors continued to digest 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