S&P 500 jumps 2.3% in a day as chips rebound, Nvidia falls
In short
- The S&P 500 is up 2.29% at 7,545.62 as of 21:34 Sofia time; the Nasdaq 100 is +3.19% and the Dow Jones +2.11%.
- Chips lead: AMD +12.8% and Broadcom +8.7%, while Nvidia is −5.7% after its board opened an investigation into CEO Jensen Huang.
- Oil is down about 3.4% on hopes of US–Iran talks; gold is up 0.8% at $4,115 an ounce.
The S&P 500 is up 2.29% on the day and stood at 7,545.62 at 21:34 Sofia time. The US session runs until 23:00 Sofia time, so the figures can still change.
What happened
US stocks are rebounding from last week’s sell-off. HawkValue data at 21:34 shows the S&P 500 at 7,545.62 (+2.29%), the Nasdaq 100 at 27,850.5 (+3.19%) and the Dow Jones at 52,368.7 (+2.11%).
Chips lead the move. AMD is up 12.8% at $506.40 and Broadcom is up 8.7% at $319.11. Nvidia is the exception: it is down 5.7% at $175.95 after its board announced an independent investigation into CEO Jensen Huang (see our earlier article).
According to Yahoo Finance, the VIX volatility index had fallen about 21% to 20.27 by 13:55 ET (20:55 Sofia), and WTI crude was down about 3.4% at $87.72 a barrel. Yahoo Finance UK links the oil drop to hopes of diplomatic talks to end the US–Iran conflict. Morgan Stanley called last week’s sell-off “unwarranted” and “overdone”.
Europe moved the same way: at their closes the DAX was up 1.73%, the Euro Stoxx 50 up 1.94% and the UK’s FTSE 100 up 1.02%.
What it means for you
If you hold an S&P 500 or Nasdaq 100 fund, today’s move is large, but one day is not a trend: the session is still open and chip stocks are moving in different directions.
The maths: $1,000 in an S&P 500 index fund gains about $22.90 today (+2.29%), and $1,000 in a Nasdaq 100 fund about $31.90. In AMD shares $1,000 is +$127.70; in Nvidia it is −$57.30. This ignores fees. Gold is $4,115 an ounce (+0.8% on yesterday’s close), so $1,000 buys about 0.243 oz.
Live prices: US stock market · gold prices USA.
Bottom line
The rally is broad: all three main Wall Street indexes and the European markets are up. But the session is not over, and chips are splitting – AMD is up more than 12%, Nvidia down more than 5%. US inflation data is due tomorrow at 15:30 Sofia time.
Sources: Yahoo Finance · Yahoo Finance UK
For information only. This is not investment advice.
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