Wall Street: semiconductors resolutely lead the rebound
Before we even look at the main indices, let's note that the 'SOXX' locomotive (semiconductor ETFs) is roaring back with a gain of +2.3%, 2.5 times higher than the average rise in the 'S&P' (+0.95% to 5,000 'round'). The Dow Jones, with few tech stocks, gained just 0.4% to 38,424, but the Nasdaq Composite climbed 1.3% to nearly 15,860.
Nvidia (+2.5% to $470) overtook Alphabet (+0.5% only) as the US market's 3rd-largest capitalization, with $1,830 bn.830 billion, and is closing in on a +50% rise since January 1: this represents +$650 billion in 'capi' in six weeks... equivalent to 10 times its anticipated sales in 2024 (20 times those of 2023).
Nvidia follows in its wake Illumina +5.2%, AMD +4.2%, On Semiconductor +3.9%, Applied Materials +3.3%, Qualcomm +2.6%, Intel +2.4%.
Investors have already forgotten that the day before, a less favorable than expected CPI had served as a pretext for some profit-taking on semiconductors (+20% in a straight line since January 4).... and had been accompanied by a sudden tightening of rates.
After breaking through 4.315% on Tuesday evening, US 10-year T-Bonds eased -5.6 basis points to around 4.26%, with the '2-year' erasing -8 basis points to 4.585%.
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