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**Chip Stocks Carry Markets Higher on Strong US Jobs Data** Wall Street bounced back Wednesday after catching a couple of early punches. The S&P 500 finished up 0.37%, while the Nasdaq 100 climbed 0.72% on the back of some surprisingly hot economic news. Private employers added 42K jobs last month—way more than the expected 30K—and the service sector expanded at its fastest clip in 8 months. Plot twist though: inflation in services is heating up, with price pressures hitting a 3-year high. Welcome to the Fed's dilemma. The real MVP? Chipmakers absolutely crushed it. Seagate led the way with an 11% surge, while Micron (+9%), Marvell (+7%), and Lam Research (+6%) all made the party. The AI infrastructure trade caught a breather after getting hammered earlier in the week—Super Micro Computer still tanked 11% on disappointing revenue numbers. Here's what's worth watching: Bond yields jumped hard on the strong jobs print, pushing the 10-year yield to a 4-week high of 4.159%. That's typically a headwind for growth stocks, but the chip rally more than offset it Wednesday. On the earnings front, 80% of S&P 500 companies have beaten forecasts so far—best quarter since 2021. But profits are only up 7.2% year-over-year, the slowest pace in two years. Gains are getting harder to come by. Bonus wildcard: the government shutdown is now the longest in US history, weighing on sentiment but potentially supporting bonds if the economy weakens. The Trump tariff Supreme Court case is also heating up—if the court strikes down reciprocal tariffs, the Treasury might have to refund over $80 billion already collected.
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