Small-cap stocks tracked by the Russell 2000 surged to fresh record highs Thursday as investors piled into the most rate-sensitive corners of the market ahead of next week's widely expected Federal Reserve rate cut.
Traders see almost no doubt the Fed will deliver a third straight 25-basis-point reduction, with futures assigning the move a nearly 90% probability.
Expectations for Fed cuts stretch well through 2026, with markets fully pricing in two additional cuts by June next year and assigning nearly 50% odds to a third by year-end.
By 12:50 p.m. in New York, the Russell 2000 was up 1% at 2,535, just shy of its late-October record of 2,540. Large caps continued to lag, with the S&P 500 flat and both the Nasdaq 100 and Dow Jones slipping slightly.
One standout theme came from nuclear-energy stocks, which rallied sharply after Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang said nuclear power will be essential to meet the massive electricity needs of AI data centers.
The VanEck Uranium and Nuclear ETF (NYSE:NLR) jumped more than 4% on the day — its strongest session since late October — and has now risen in seven of the past eight trading days, gaining 14% over that stretch.
Individual names followed suit, with OKLO Inc. (NYSE:OKLO), NuScale Power Corp. (NYSE:SMR), and Nano Nuclear Energy Inc. (NASDAQ:NNE) climbing 14%, 13%, and 9%, respectively.
Dollar General Corp. (NYSE:DG) led S&P 500 gainers, soaring 12% after posting stronger-than-expected earnings and upbeat guidance, reaching its highest level since August 2024. Salesforce Inc. (NASDAQ:CRM) added nearly 4% following positive results.
Not all earnings landed well. Snowflake Inc. (NYSE:SNOW) fell 11% as its growth slowed in the third quarter, while The Kroger Co. (NYSE:KR) dropped 4.4%.
On the downside among megacaps, Intel Corp. (NASDAQ:INTC) slid nearly 7% after an eight-session, 30% rally.
In crypto and commodities, Bitcoin (CRYPTO: BTC) slipped 1.2% to $92,400 after two days of gains, while gold inched 0.2% higher to $4,210 per ounce, extending its year-to-date rally to 60%.
Thursday’s Performance In Major US Indices, ETFs
| Major Indices | Price | % |
| • Russell 2000 | 2,535.45 | 1.0% |
| • S&P 500 | 6,851.09 | 0.0% |
| • Dow Jones | 47,877.51 | -0.1% |
| • Nasdaq 100 | 25,561.82 | -0.2% |
According to Benzinga Pro data:
- The Vanguard S&P 500 ETF (NYSE:VOO) flattened at $628.66.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) inched 0.1% down to $479.15.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) eased 0.2% to $621.84.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 1% to $252.08.
- The Industrial Select Sector SPDR Fund (NYSE:XLI) outperformed, up 0.6%; the Health Care Select Sector SPDR Fund (NYSE:XLV) lagged, down 0.7%.
Russell 1000’s Top 5 Gainers And Fallers On Thursday
| Stock Name | % Change |
|---|---|
| Dollar General Corp. | 12.64% |
| Sandisk Corp. (NASDAQ:SNDK) | 9.52% |
| GE Vernova Inc. (NYSE:GEV) | 5.89% |
| AppLovin Corp. (NASDAQ:APP) | 5.17% |
| Corning Inc. (NYSE:GLW) | 4.03% |
| Stock Name | % Change |
|---|---|
| Intel Corp. | -6.52% |
| Wynn Resorts Ltd. (NASDAQ:WYNN) | -5.90% |
| Albemarle Corp. (NYSE:ALB) | -4.74% |
| LyondellBasell Industries (NYSE:LYB) | -4.45% |
| The Kroger Co | -4.31% |
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Image created using artificial intelligence via Midjourney.
