The major US stock indices have opened with an increase. The NASDAQ index is aiming for yet another record close. <\/p>\n
Currently, the Dow industrial average is up by 43.65 points, or 0.16%, reaching 44,298.43. The S&P index has increased by 5.54 points, or 0.09%, standing at 6,269.24. The NASDAQ index rose by 36.78 points, or 0.18%, to 20,767.27.<\/p>\n
The small-cap Russell 2000 has climbed by 5.08 points, or 0.24%. Netflix is set to announce its earnings after the market closes; its shares are currently down $0.34, or -0.19%, trading at $1,247.97. <\/p>\n
TSMC shares are trading higher by $5.69, or 2.40%, at $243.25. The company reported earnings-per-share of $2.61, surpassing the estimated $2.38. TSMC’s revenues reached $31.79 billion, compared to the anticipated $30.21 billion.<\/p>\n
Given the market’s upward momentum, we believe traders should maintain a bullish bias, particularly in the technology sector. The NASDAQ’s push for new records is largely driven by a handful of mega-cap tech stocks, which now account for over 30% of the S&P 500’s total market value. This concentration suggests that playing the trend through index derivatives like QQQ calls remains a primary strategy.<\/p>\n
The strong earnings report from the Taiwanese semiconductor company is a critical signal for the entire artificial intelligence supply chain. This result validates the ongoing demand for high-end chips, a trend we’ve seen propel the VanEck Semiconductor ETF (SMH) up over 50% year-to-date. We view this as a green light to initiate or add to bullish positions on semiconductor-focused derivatives.<\/p>\n
For the upcoming earnings announcement, a defined-risk strategy is prudent. The options market is currently pricing in a potential 9% move in the underlying stock, creating an opportunity for those expecting high volatility. We recommend considering a long straddle or strangle to profit from a significant price swing in either direction post-announcement.<\/p>\n
We are also watching the performance of the small-cap index for signs of a broadening rally. Historically, a sustained period of large-cap outperformance is often followed by a catch-up trade in smaller, more domestically-focused companies if economic conditions improve. Traders could look at longer-dated call options on the IWM ETF as a way to position for this potential rotation in the coming months.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US stock indices rise, with NASDAQ nearing record; TSMC beats earnings estimates, Netflix earnings awaited.<\/p>\n","protected":false},"author":62,"featured_media":16991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t