(June 9): US stocks rose Tuesday, extending gains to a second straight session, with chipmaker shares including Nvidia Corp leading a broad advance.
The S&P 500 Index was up 1% as of 9:49am in New York, while the Nasdaq 100 Index jumped 1.3%, led by semiconductor companies. The Philadelphia Semiconductor Index, home to chip bellwethers such as Nvidia and Advanced Micro Devices Inc, advanced 2.2%. That puts the gauge on track for its best two-day gain in a month, following a slide Friday. Micron Technology Inc advanced 2.9%, while Broadcom Inc. rose nearly 1%.
Among other individual shares, Applied Digital jumped 9.3% after the neocloud company said it signed a 15-year take-or-pay lease with a US-based artificial intelligence hyperscaler, for 210 megawatts of critical IT load at its Delta Forge 2 campus. Meantime, JM Smucker — the biggest S&P 500 gainer — rallied 10% after organic sales and adjusted earnings per share beat expectations for the latest quarter.
US stocks also got a boost after President Donald Trump renewed his claims of momentum toward ending the conflict with Iran. Investors also focused on the AI excitement that’s powered US stocks to records in recent weeks, with ChatGPT maker OpenAI confidentially filing for a US initial public offering on Monday, before SpaceX’s hotly anticipated market debut later this week. A basket of the so-called Magnificent Seven companies advanced 0.9%.
“The tech-led rebound in the wake of Friday’s market rout continues amid AI earnings optimism and easing geopolitical angst, as President Trump reiterates a peace deal with Iran is imminent,” wrote Tom Essaye, founder of ‘The Sevens Report’ newsletter.
Of course, options traders whipsawed by the market’s recent gyrations remain anxious that more volatility may arrive in the coming days, starting with Wednesday’s report on consumer prices.
See also: Chip stocks rally in AI trade revival after plunge
Robust jobs data has put extra focus on the inflation figures as traders speculate the Federal Reserve’s next move will be to hike interest rates. The S&P 500 is expected to swing 0.9% in either direction on Wednesday, based on the cost of at-the-money puts and calls, according to Citigroup Inc. That compares to an average realized move of just 0.5% over the past 12 months.
Concern about sticky inflation and the Fed’s pressure to contain it briefly pushed the Cboe Volatility Index, or VIX, above 20 on Friday, a level that signals concern among traders. Wall Street’s chief fear gauge fell below 18 on Tuesday.
Wednesday’s CPI report is forecast to show the core reading — which excludes food and energy costs — to have risen by 0.3% in May from a month earlier, down from 0.4% in April.
See also: US stocks rebound from sell-off as Nvidia leads Big-Tech gains
Elsewhere, Nuvalent soared nearly 40% after GSK agreed to acquire the company for US$10.6 billion ($13.6 billion). Vail Resorts fell 7.1% after the ski resort operator cut its net income guidance for the full year, attributing the reduction to “historically challenging” weather conditions in the western US.
Uploaded by Magessan Varatharaja
