Chip stocks roar back 6.86% while Nvidia stumbles and yields climb

The Philadelphia Semiconductor Index jumped 6.86%, closing at 10,033.93 after adding 643.68 points, according to a US market report. The buying spread wide: the Nasdaq 100 climbed 3.40% to 27,907.63, the S&P 500 rose 2.35% to 7,549.94, the Dow gained 1,104.02 points for a 2.15% move to 52,389.75, and the Russell 2000 added 3.15% to 2,840.81. Nine of the S&P's 11 sectors finished up more than 1%, with industrials and consumer discretionary each ahead roughly 4%.

The rebound doesn't undo last week's wreckage. The SOX had dropped 12.15% over the prior week, including a 12.25% slide on Nov. 5, before bouncing 4.21% on Nov. 6 and 6.86% on Nov. 9. It still hasn't recovered to where it traded before the selloff.

Not every AI name joined the party. Nvidia fell even as the chip index surged, a split the report ties to management uncertainty following reports of an internal investigation into CEO Jensen Huang. That divergence, per the report, shows that AI industry optimism and individual company valuations don't always move in lockstep.

Falling crude did much of the lifting. WTI futures slid to around $86.9 from $90.4, easing Middle East supply worries and pointing to lower transport and energy costs. But the 10-year Treasury yield still rose to 4.880% from 4.859%, and the probability of a rate hike at the December FOMC sits near 82%.

Sentiment improved without turning bullish. The Fear & Greed Index climbed to 32 from 22, leaving Extreme Fear behind but staying in Fear territory, while the VIX sank to 19.93 from 25.63. The dollar index slipped to 101.6 from 102.2 and the yen strengthened to 157.9 per dollar from 158.5. Gold rose to about $4,147 from $4,073, while Bitcoin fell to roughly $74,880 from $75,901.

The New York Fed's October Survey of Consumer Expectations found households putting the odds of higher unemployment a year out at their highest since April 2020, with inflation expectations flat at 3.9% for one year, 3.3% for three years and 3.0% for five. That survey was taken before last week's jobs report, which showed non-farm payrolls up 165,000, above forecasts. October CPI arrives Nov. 10.