Stocks rise as AMD leads tech trade comeback
Stocks rose on Wednesday, marked by a rebound in technology names following their sell-off in the prior day as the names continue to seesaw in what has been a volatile month for the trade.
The S&P 500 gained 0.2%, while the Nasdaq Composite climbed 0.3%. The Dow Jones Industrial Average hit a fresh record, rising 185 points, or 0.4%.
Advanced Micro Devices shares popped more than 6% on the heels of CEO Lisa Su saying Tuesday that the company anticipates the total market for artificial intelligence data center parts and systems will reach $1 trillion by 2030. Su also said that the company should see its overall revenue growth increase as a result of “insatiable” demand for AI chips.
Elsewhere in tech, Nvidia shares rose 0.7% after Foxconn, one of its suppliers, reported a 17% year-over-year increase in earnings. Both Nvidia and AMD had come under pressure during Tuesday’s session, dropping about 3% and more than 2%, respectively. Those two and others like Oracle swinging lower in the previous session reflect the uneasy sentiment among investors that tech valuations could be stretched after their recent surge.
Tuesday saw a tale of two markets emerge — the Dow rallied more than 550 points, while the Nasdaq slipped. The S&P 500 closed higher on Tuesday, notching its third positive session in a row. Consumer stocks such as Walmart, Home Depot and McDonald’s propped up the 30-stock Dow in the previous session as traders moved into parts of the market with lower valuations. The health care sector was the top-performing sector, driven by moves higher in names such as Eli Lilly and Johnson & Johnson.
Investors are keeping an eye on Washington, as the U.S. government could reopen as soon as the end of this week. The Senate on Monday evening passed a spending bill that has since moved to the House of Representatives for a final vote. House Majority Leader Steve Scalise, R-La., told CNBC Wednesday that he expects the chamber to vote on the bill around 7 p.m. ET.
Source : Cnbc.com
