The semiconductor index surged 4.2% on Friday, bolstered by double-digit gains from Advanced Micro Devices and an 8.6% leap in SpaceX shares. Despite this boost, broader sentiment remained weighed down by October payroll numbers that drove the unemployment rate down to 4.1%. Consequently, traders boosted the probability of a December Fed rate increase to 78%, cementing steep weekly losses for major indexes. Additionally, falling oil prices pressured traditional sectors, dragging the S&P 500 energy index down 12% over the week.
Key points
The Nasdaq entered official correction territory after sliding 10% from the peak it reach…: The Nasdaq entered official correction territory after sliding 10% from the peak it reached one month earlier.
Interest rate hike expectations mounted as LSEG data revealed a 78% probability of a Fede…: Interest rate hike expectations mounted as LSEG data revealed a 78% probability of a Federal Reserve increase next month.
Individual corporate earnings caused sharp divergence, evidenced by Airbnb jumping 12% wh…: Individual corporate earnings caused sharp divergence, evidenced by Airbnb jumping 12% while software firm Atlassian plunged 16%.
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Gains within technology were broadly shared, with the semiconductor index rallying 4.2%. Nvidia rose 2.8%, Advanced Micro Devices added 11% and Sandisk rebounded almost 4%. Shares within the sector opened strongly and held much of their gains, with the Nasdaq ending up 1.1% after trading as much as 2% higher.
The broad revival underscores investor faith in the AI buildout that has driven US stock indexes to dozens of record closes this year, despite a shakeout that began with a US long-term Treasury yield spike in August and the stock volatility of the past month.
"We still think AI is the dominant theme in this bull market," said Keith Lerner, chief investment officer at Truist Advisory Services in Atlanta. "We are still giving technology the benefit of the doubt."
The S&P 500 climbed 23 points, or 0.32%, to end the session at 7,376.86 points. The Nasdaq gained 264 points to 24,579.43 points, while the Dow Jones Industrial Average declined 237 points, or 0.46%, to 51,285.73 points.
Lerner said he views the selloff this week, which has taken the Nasdaq into…
Record earnings from the copper division and operational recovery at Novelis propelled Hindalco Industries to strong second-quarter financial growth. While elevated domestic coal prices threaten to temporarily increase domestic aluminium production costs in the coming quarter, broader market sentiment remains reinforced by robust earnings diversification away from London Metal Exchange swings.
Market participants entering the auspicious Samvat 2083 session face a landscape defined by thin liquidity and technical resistance near recent market highs. Analysts advise against placing aggressive bets, instead recommending a selective, stock-specific approach that capitalizes on low benchmark valuations while sidestepping overheated market segments. Investors must carefully navigate key technical boundaries alongside external macroeconomic headwinds like crude oil fluctuations.
Strong foreign institutional inflows and lower crude oil prices sparked a massive weekly rebound across Indian equity benchmarks, pushing the Nifty 50 past key technical milestones. Market participants are positioning for additional momentum during the upcoming festive session as major indices flash technical breakouts. However, analysts warn that elevated momentum indicators could trigger near-term consolidation following the sharp advance.