Chipmakers spearheaded the market turnaround as the Philadelphia Semiconductor Index surged 4.2%, aiding gains in the Nasdaq Composite and S&P 500 while the Dow Jones slipped slightly. Solid macroeconomic reports showed U.S. nonfarm payrolls beat expectations by adding 165,000 jobs, which propelled the 10-year Treasury yield up to 4.85%. However, sentiment remained fragile overseas, where key benchmark equity indexes in Japan and South Korea tumbled around 6%. Political headwinds also linger domestically as Texas Governor-elect Gina Hinojosa prepares legislation to curb mass data center construction.
Key points
Technology shares drove a selective domestic rebound, but major averages remained positio…: Technology shares drove a selective domestic rebound, but major averages remained positioned to conclude the week with net losses.
Regulatory challenges and enormous infrastructure costs continue to cast uncertainty over…: Regulatory challenges and enormous infrastructure costs continue to cast uncertainty over the long-term profitability of artificial intelligence.
Strong labor metrics reinforced the U.S. dollar and elevated the 10-year Treasury yield t…: Strong labor metrics reinforced the U.S. dollar and elevated the 10-year Treasury yield to 4.85%.
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Benchmark S&P 500 and the Nasdaq were trading higher with technology, communication services and consumer discretionary stocks driving gains. The Dow edged lower on the day. All three indexes were on track for weekly losses following a brutal selloff in the prior session.
The Dow Jones Industrial Average was down 0.08%, the S&P 500 rose 0.71%, and the Nasdaq Composite gained 1.4%.
The Philadelphia Semiconductor Index was up 4.2% after slumping in its biggest one-day drop since April 2025. Nvidia rose 3%, after suffering its worst day since January 2025, when the emergence of low-cost Chinese AI model DeepSeek hammered markets.
Other heavyweight chipmakers, including AMD, Intel , and Micron Technology, were up between 5.5% and 10%, while Elon Musk's Tesla and SpaceX were also up 2% and 8% respectively after losses earlier this week.
"Most of the disruption of the AI buildout will not probably occur but it's just the uncertainty of the change in government from Republican-led to Democratic-led, not only at the federal level but the state, local levels," said Gerry Sparrow, president and portfolio manager at…
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.