Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

CHIP INDEX NEARS HISTORIC WINNING STREAK AS EQUIPMENT MAKERS LEAD CHARGE

Tech, and especially software, have taken a hit so far in 2026. That said, chip stocks have been big winners.

The PHLX Semiconductor Index .SOX has surged nearly 20% year-to-date (YTD). S&P 500 Tech .SPLRCT is off 1.7% this year, and the Mag 7 group of stocks MAGS.K is down 4.1%. Software has been especially weak. The S&P 500 Software & Services Index .SPLRCIS has plunged about 21%.

Now, Nvidia NVDA.O, which posted better-than-expected results for its January quarter on Wednesday and forecast current-quarter revenue above market estimates, is trading up almost 1% ahead of Thursday's opening bell.

This, as investors, used to solid revenue beats from the company for 14 straight quarters, were likely disappointed by what may be viewed as "uneventful results." The VanEck Semiconductor ETF SMH.O is edging higher in premarket trading.

The SOX, which ended Wednesday at 8,467.43, and posted record highs, has been exhibiting a strong uptrend.

In fact, the index is on track to rise for an 11th straight week. The SOX rose 11 weeks in a row in November 2017. Of note, using LSEG data back to mid-1994, the SOX has never risen 12 straight weeks.

In any event, the index faces a resistance parallel derived from the support line from its 2016 low.

This line is now around 9,375 on a weekly basis, or roughly 11% above Wednesday's close.

In terms of support, the February 18 low was at 7,926.98, while the February 4 low was at 7,461.74. The rising 20-week moving average, which has underpinned the advance since May of last year, is now around 7,425.

Within the SOX, the top three performers so far this year, with gains of 53%-77%, are Teradyne TER.O, Entegris ENTG.O and Applied Materials AMAT.O. Nvidia, up 4.6% YTD, is showing the smallest rise of the 22 index constituents in positive territory. Astera Labs ALAB.O, off 23%, is taking the biggest hit of the eight losers.

Since early September of last year, the relative-strength trend within the SOX has favored chip equipment makers vs. chipmakers.

That said, if the January trough holds, and the ratio can reclaim its descending 50-day moving average, it may signal the tide is turning back in favor of chipmakers.

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

BRITISH POLITICS NOT A THREAT TO RECENT GILT RALLY, SAY ING CLICK HERE

MARKETS STILL UNDERPRICING PUBLIC-PRIVATE NUCLEAR PUSH - WISDOMTREE CLICK HERE

TO SURVIVE A FRACTURED WORLD, DITCH THE OLD RULEBOOK CLICK HERE

UTILITIES AND INDUSTRIALS KEEP STOXX HIGH CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES STEADY, LOTS OF EARNINGS CLICK HERE

NVIDIA DELIVERS, BUT GOOD NO LONGER CUTS IT CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)