US markets opened higher today, buoyed by a stabilization in bond yields and significant gains in semiconductor stocks, particularly Micron and AMD, following strike announcements at Samsung. The S&P 500 rose 0.7% and the NASDAQ Composite climbed 1.3%, supported by a 4% drop in energy prices that has eased upward pressure on bond yields. The yield on 10-year US Treasury bonds reached a peak of 4.68% yesterday, marking a substantial rise since February, although its impact on equities has been muted so far.

NVIDIA’s stock is experiencing volatility ahead of its earnings report this evening, with investors keenly focused on its revenue outlook, heavily reliant on a handful of major clients. Meanwhile, Micron’s shares surged over 3.5% as investors shifted away from Asian manufacturers amid the Samsung strike news. Despite positive earnings from Target and Lowe’s, their stocks reacted negatively due to concerns over margins and future forecasts.

The key takeaway for market professionals is the potential for semiconductor stocks to continue outperforming, driven by supply chain disruptions at competitors and strong demand for innovative products, which could enhance overall market sentiment in the tech sector.

Source: xtb.com