Chip stocks drove a broad market rebound on Tuesday, lifting major indices from recent losses. The Philadelphia Semiconductor Index surged over 3%, marking its best single-day gain in weeks. Investors moved back into the sector after a sharp sell-off triggered by concerns over rising interest rates and export restrictions.
Nvidia led the rally, gaining nearly 5% after announcing a new data center chip. Advanced Micro Devices and Intel also posted strong gains, rising 4.2% and 3.8% respectively. Traders cited bargain hunting as a key factor, with many chip stocks now trading at lower valuations after the recent downturn.
The broader market followed the chip sector higher. The S&P 500 rose 1.2%, while the Nasdaq Composite climbed 1.8%. The Dow Jones Industrial Average added 0.7%. Analysts described the move as a technical rebound, noting that trading volume was below average.
Apple also generated headlines, unveiling an AI-enhanced version of its Siri voice assistant. The update, set to launch with the next iOS release, aims to improve natural language understanding. Apple stated the new Siri will handle complex queries and integrate more deeply with third-party apps.
SpaceX remained in the spotlight amid reports of an upcoming IPO. Speculation about a “pop” on the first trading day has intensified, with some analysts estimating the company’s valuation could exceed $150 billion. SpaceX has not confirmed a timeline for the public offering.
Other tech stocks saw mixed performance. Microsoft rose 0.9%, while Alphabet slipped 0.3%. Meta Platforms gained 1.1% after announcing new features for its advertising platform.
Bond yields eased slightly, with the 10-year Treasury note falling to 4.52%. The dollar index dipped modestly, providing additional support for equity markets. Oil prices remained steady, as traders weighed supply concerns against demand forecasts.
The rebound comes amid ongoing macroeconomic uncertainty. Federal Reserve officials have signaled they may hold interest rates steady at their next meeting, but inflation data remains above target. Investors are closely watching upcoming earnings reports from chipmakers for further direction.
