Will SMidCaps Continue To Underperform?

Today was another good day for technology stocks, semiconductor stocks, and the Magnificent-7. In the S&P 500, they were up 1.44%, 3.28%, and 2.01%. We continue to recommend overweighting the LargeCap S&P 500 Information Technology and Communication Services sectors. We aren't as keen on the MidCap S&P 400 or the SmallCap S&P 600 (collectively the “SMidCaps”), or especially the SmallCap Russell 2000, all of which continue to underperform the S&P 500 (chart). The latter was down slightly today.

Boosting semiconductor stock prices today was news that Foxconn's revenues rose 15% y/y. That gave Nvidia a 3.4% boost. Jensen Huang, Nvidia's CEO, is delivering a keynote address at the 2025 Consumer Electronics Show this evening.