FX.co ★ Nasdaq Rises on Chip Rally

On Wednesday, U.S. stock markets closed with mixed results as investors assessed changing trade policies and recent advances in the technology sector. The S&P 500 inched up by 0.1%, making up for its losses earlier in the year, while the Dow Jones Industrial Average fell by 89 points. In contrast, the Nasdaq 100 rose by 0.7%, buoyed by significant gains in leading chip manufacturers. Nvidia saw a 3% increase after reports emerged regarding its AI chip shipments to Saudi Arabia, and AMD surged 4% following its announcement of a $6 billion share repurchase program. The widespread rally in artificial intelligence contributed to a 17% spike in Super Micro Computer, which positively influenced overall market sentiment.

Furthermore, optimism was bolstered by a temporary reduction in U.S.-China tariffs, which sparked hopes for a more comprehensive trade pact despite existing uncertainties. President Trump's visit to the Middle East resulted in numerous business agreements, such as a Boeing deal with Qatar Airways and new AI initiatives in the Gulf region. Although megacap stocks demonstrated resilience, the performance across sectors varied, and Federal Reserve officials expressed a cautious stance amid fluctuating inflation data.