最新ニュース iShares Semiconductor ETF (NASDAQ:SOXX)

iShares Semiconductor ETF

Technology

To pursue its objective, the Fund seeks to track the investment results of the NYSE Semiconductor Index (the Underlying Index), which measures the performance of the equity securities of the 30 largest U.S.-listed companies that are classified according to the ICE Uniform Sector Classification schema within the semiconductors industry (as determined by ICE Data Indices, LLC or its affiliates (collectively Index Provider or IDI)). Constituents must also meet other eligibility criteria determined by the Index Provider, including minimum market capitalization and liquidity requirements. Companies classified within the semiconductors industry include companies that either manufacture materials that have electrical conductivity (semiconductors) to be used in electronic applications or utilize LED and OLED technology. The semiconductors industry also includes companies that provide services or equipment associated with semiconductors such as packaging and testing..

Broadcom Inc Common

Nvidia Corp.

Advanced Micro Devices Inc.

Applied Materials, Inc.

Qualcomm Inc.

Kla Corp.

Monolithic Power Systems Inc

Texas Instruments Inc

Taiwan Semiconductor - Adr

Intel Corp.

Analyst Color

Equities

News

Tech

AAPL

INTC

NVDA

ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF

NVDX

PLTR

SOXL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

先週8月2日に終了した週は、テクノロジースペースが下落し、テクノロジー選択セレクトセクターSPDRファンド（NYSE：XLK）が5%以上下げ、大型株企業の業績を測るS&amp;P500指数を下回った。今週、テック市場を駆りたてた要因と、これらの株が近期および中期に向けて向かっている方向をまとめた。

大型企業株　S&amp;P500株をSPDRファンドが下回る

A hotter-than-expected jobs report spurred a premarket rally on Wall Street Friday, showcasing the U.S. economy&#8217;s resilience and easing concerns <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41184080/us-economy-adds-254-000-new-jobs-in-september-smashes-expectations-unemployment-f">over an economic slowdown. </a>
The strong labor data also led traders to rethink the Federal Reserve&#8217;s aggressive rate cuts, resulting in a jump in the dollar and Treasury yields.
What Happened: The U.S. economy added 254,000 jobs in September, far exceeding the expected 140,000. This marks an acceleration from August&#8217;s 159,000 figure and well above the 12-month average of 230,000. Payrolls for both July and August were upwardly revised by 55,000 and 17,000, respectively.
Private sector payrolls accounted for 223,000 jobs, while the government added 31,000. The unemployment rate fell unexpectedly by 0.1% to 4.1%, beating the forecasted 4.2%.
Wages grew by 0.4% in September, surpassing the expected 0.3%. 
Why It Matters: The stronger-than-expected pace of job addition, coupled with a surprisingly lower unemployment rate and higher wage growth, signals a strong consumer spending outlook, which could lift corporate earnings, particularly as we head into the fourth quarter.
Yet the labor market&#8217;s strength also complicates the Federal Reserve&#8217;s efforts to curb inflation. Higher wages could stoke consumer demand, putting upward pressure on prices, potentially slowing disinflation efforts. This may lead the Fed to delay or scale back anticipated interest rate cuts.
Before the jobs report, the market had priced in a 30% chance of a 50-basis-point rate cut in November, according to the CME FedWatch Tool. Following the data release, those odds plummeted to 11%. 
<h3 class="wp-block-heading">Market Reactions:</h3>
<ul>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) jumped 0.9% in premarket trading, edging closer to its recent record highs.</li>
<li>The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks major tech stocks, rallied 1.4%, driven by strong gains in the semiconductor sector. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) surged 2.1%.</li>
<li>Blue chips rose as well, with the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) up by 0.7%.</li>
<li>Small caps outperformed large caps. The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rallied 1.7%. </li>
<li>Yields on the 10-year Treasury bond soared by 11 basis points to 3.96%. Yields on the policy-sensitive two-year note spiked by 15 basis points to 3.87%.</li>
<li>The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) tumbled 1.2%. </li>
<li>The U.S. Dollar Index, which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rose 0.7%.</li>
</ul>
<h3 class="wp-block-heading">Top Gainers Post-Jobs Report:</h3>
Using the Movers function on <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent100424&amp;t=be2bearmibe3na1">Benzinga Pro</a>, here are the top performers among U.S. mega-cap stocks in the 30 minutes following the release of the September jobs data.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Company Name</th>
<th>Price</th>
<th>Change</th>
</tr>
</thead>
<tbody>
<tr>
<td>KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>)</td>
<td>$799.25</td>
<td>+3.18%</td>
</tr>
<tr>
<td>Mitsubishi UFJ Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MUFG#NYSE">MUFG</a>)</td>
<td>$10.18</td>
<td>+3.18%</td>
</tr>
<tr>
<td>Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</td>
<td>$205.53</td>
<td>+2.10%</td>
</tr>
<tr>
<td>Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>)</td>
<td>$83.60</td>
<td>+2.08%</td>
</tr>
<tr>
<td>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)</td>
<td>$166.90</td>
<td>+1.92%</td>
</tr>
<tr>
<td>ARM Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)</td>
<td>$142.44</td>
<td>+1.91%</td>
</tr>
<tr>
<td>Shopify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>)</td>
<td>$80.02</td>
<td>+1.67%</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>$175.66</td>
<td>+1.66%</td>
</tr>
<tr>
<td>Adobe Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>)</td>
<td>$510.58</td>
<td>+1.59%</td>
</tr>
<tr>
<td>Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td>
<td>$39.96</td>
<td>+1.56%</td>
</tr>
<tr>
<td>Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>)</td>
<td>$204.82</td>
<td>+1.56%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
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<li><a href="https://www.benzinga.com/news/24/10/41182466/spirit-airlines-drops-over-40-amid-bankruptcy-discussions">Spirit Airlines Drops Over 40% Amid Bankruptcy Discussions</a></li>
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Photo via Shutterstock.

Macro Economic Events

Sector ETFs

Broad U.S. Equity ETFs

Econ #s

Economics

Federal Reserve

Markets

Movers

ETFs

ADBE

AMAT

AVGO

SPDR Dow Jones Industrial Average ETF Trust

KLAC

LRCX

MUFG

SHOP

iShares Trust Barclays 20+ Year Treasury Bond Fund

PowerShares DB US Dollar Index Bullish Fund

S&P 500 Nears Record Highs On Hot Jobs Data: Dollar, Treasury Yields Surge As Aggressive Interest Rate Cut Hopes Fade

<a target="_blank" href="https://www.benzinga.com/news/24/09/41103339/how-hurricane-helene-could-disrupt-global-semiconductor-supply-chain-and-potentially-drive-inflation" rel="noreferrer noopener">Global&nbsp;semiconductor&nbsp;manufacturers</a>, including Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), Infineon Technologies, Samsung Electronics, and&nbsp;SK Hynix, are monitoring supplies of high-purity quartz after&nbsp;Hurricane Helene&nbsp;halted production at two leading North Carolina mines, Sibelco and Quartz Corp SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3280937/tsmc-samsung-other-major-chip-makers-monitor-quartz-supply-after-hurricane-shut-mines?module=perpetual_scroll_0&amp;pgtype=article" rel="noreferrer noopener">reports</a>.
Quartz is a critical component used in the semiconductor industry. Thus far, the companies have maintained that Hurricane Helene will have no impact on the material.
According to SCMP, two North Carolina mines that produce most of the world's supply have halted production.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41139084/nvidia-expands-ai-offerings-with-new-open-source-models-and-unreal-engine-5-plugins" rel="noreferrer noopener">Nvidia Expands AI Offerings with New Open-Source Models and Unreal Engine 5 Plugins</a>
Meanwhile, Taiwan Semi is considering discounts for its 7-nanometer and 14-nanometer technology processes and above to boost capacity utilization on mature processes and prevent margin loss from lower average selling prices (ASP)&nbsp;due to competition from other foundries, the Commercial Times <a target="_blank" href="https://www.ctee.com.tw/news/20241002700079-439901" rel="noreferrer noopener">reports</a>.
Taiwan Semiconductor's 7-nm processors accounted for 17% of revenue in <a target="_blank" href="https://www.benzinga.com/markets/asia/24/07/39832197/apple-nvidia-supplier-tsmc-reports-strong-q2-results-amid-booming-demand-for-ai-chips-guides-q3-abov" rel="noreferrer noopener">the second quarter</a>.
The contract chipmaker's advanced manufacturing processes are fully packed, driven by the demand for artificial intelligence and smartphones and a recovery in the utilization rate of mature process wafer foundries as the semiconductor industry hits the traditional peak season.
The semiconductor industry, which noted a huge upside from the shift to artificial intelligence technology, remains susceptible to geopolitical tensions and Wall Street questioning the sustainability of the capital-intensive technology.
Semiconductor ETFs VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) have lost close to 5% in the last five days due to the industry selloff led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which analysts tout as a key AI beneficiary.
Price Action: TSM stock is down 0.32% at $175.24 premarket at last check Thursday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41143369/apple-to-launch-budget-iphone-in-2025-aims-for-market-share-gains-from-huawei-and-xiaomi" target="_blank" rel="noreferrer noopener">Apple To Launch Budget iPhone in 2025, Aims for Market Share Gains from Huawei and Xiaomi</a></li>
</ul>
Photo by wakamatsu.h via Shutterstock

Media

What's Going On With Taiwan Semiconductor Sock On Thursday?

Semiconductor chip stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) noted investor selloff since Friday after gaining from Micron Technology, Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) upbeat quarterly print and U.S. Fed rate cut to boost demand.
Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Qualcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Texas Instruments Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>), Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Micron, Analog Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>), Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) are trading lower Tuesday. Semiconductor ETFs VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) are down over 3%.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41124391/qualcomm-partners-with-stmicroelectronics-to-boost-ai-powered-iot-connectivity" rel="noreferrer noopener">Qualcomm Partners With STMicroelectronics To Boost AI-Powered IoT Connectivity</a>
The street remains jittery over <a target="_blank" href="https://www.benzinga.com/news/24/10/41119735/nvidia-faces-new-competition-cerebras-files-for-ipo-huawei-pushes-ai-chips" rel="noreferrer noopener">artificial intelligence prospects</a> as analysts flagged Nvidia&#8217;s dependence on four customers, which are also developing in-house chips, and its delays in product releases.
Though China urges its companies to adopt domestic AI chipmakers, National Science and Technology Council (NSTC) Minister Wu Cheng-wen said China lags behind Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) <a href="https://www.benzinga.com/government/24/10/41114632/taiwan-semiconductors-2-nm-breakthrough-puts-taiwan-a-decade-ahead-of-chinas-semiconductor-industry" target="_blank" rel="noreferrer noopener">advanced technology semiconductor manufacturing</a> by at least a decade. Taiwan Semiconductor is a crucial supplier for Nvidia and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
The U.S. Chips Act played a crucial role in helping America develop its semiconductor base by offering <a target="_blank" href="https://www.benzinga.com/government/24/09/41007184/taiwan-semi-secures-7-5b-boost-for-arizona-expansion-aims-for-advanced-chip-production-report" rel="noreferrer noopener">subsidies to chipmakers</a> to boost artificial intelligence chip production in the country.
The semiconductor sector could see another tailwind if the Biden administration inks a bill to fastrack the specific semiconductor manufacturing projects that receive subsidies through the Chips Act by diluting the federal environmental scrutinies.
The legislation would exempt qualifying chip projects from reviews under the National Environmental Policy Act, the New York Times <a href="https://www.nytimes.com/2024/10/01/us/politics/biden-semiconductor-environmental-review.html" target="_blank" rel="noreferrer noopener">reports</a>.
Struggling chipmaker Intel recently got a boost from <a href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" target="_blank" rel="noreferrer noopener">$3 billion in direct funding</a> under the Chips Act in addition to the $8.5 billion in grants and $11 billion in loans that the company previously won under the act.
Also Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41124123/micron-set-for-profit-surge-with-high-margin-products-and-ai-driven-market-expansio" target="_blank" rel="noreferrer noopener">Micron Set for Profit Surge with High-Margin Products and AI-Driven Market Expansion, Analyst Says</a></li>
</ul>
Photo via Shutterstock

Government

Regulations

MRVL

QCOM

Despite Nvidia Selloff, Biden's Law and Taiwan Semi's Advantage Offer Growth Potential

Shares of Super Micro Computer (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) dropped more than 10% Thursday following a report that the Department of Justice is investigating the company <a href="https://www.benzinga.com/topic/semiconductors">for potential accounting violations</a>. The stock, once a high-flyer during the AI market surge, has now plunged over 60% from its peak. But, shares rebounded Friday, trading up 4.6% to $421.32 a share at the time of publication. <a href="https://www.benzinga.com/premarket-prep">Benzinga PreMarket Prep</a> hosts, professional traders Joel Elconin and Dennis Dick, discussed the move on Friday's episode of the show. 
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"It bounced where it needed to bounce," <a href="https://www.youtube.com/watch?v=ENNx8d_piHM">Dick said.</a> "You got to $382, you did undercut it at $373, but you quickly got back above that… I think it's an overshoot to be honest… there's a lot of things we don't know, a lot of headline risk, but I think $373 from yesterday is safe." Elconin called the situation &#8220;convoluted,&#8221; pointing to the uncertainty regarding the accounting situation. The DOJ's probe comes after a Hindenburg Research short report on the company, which also alleged accounting malpractices. Read Also: <a href="https://www.benzinga.com/news/24/09/41052423/super-micro-computer-stock-falls-on-report-of-doj-probe-what-to-know">Super Micro Computer Stock Falls On Report Of DOJ Probe: What To Know </a><a href="https://www.benzinga.com/news/24/09/41052423/super-micro-computer-stock-falls-on-report-of-doj-probe-what-to-know"> </a>But, the PreMarket Prep hosts pointed out the market's tendency to overreact to news headlines, which could help explain Friday's bounce. Super Micro Computer's stock had already declined following the release of Hindenburg Research's short report in late August, meaning that some of the negative news could have already been priced in. Super Micro Computer's decline on Thursday came while other chip stocks rallied following strong quarterly results from Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>). The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), which tracks some of the biggest names in the sector, closed up more than 3.5% Thursday, while SMCI's stock closed down 12%. 
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</ul>
Photo: Shutterstock

Exclusives

SMCI

Is SMCI's Big Drop A Warning Sign Or Buying Opportunity? Here's What Professional Traders Say

The quarterly performance of Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), and Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) adequately reflects that the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41046485/whats-going-on-with-nvidia-braodcom-intel-and-other-chip-stocks-on-thursday" rel="noreferrer noopener">artificial intelligence wave</a> is in no mood to slow down in the near term.
Hyperscalers, including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) remain aggressively invested in their artificial intelligence ambitions. The U.S. and China&#8217;s key rate cuts also added an additional tailwind for the capital-intensive industry.
Microsoft committed 14.7 billion Reais ($2.70 billion) over three years to Brazil&#8217;s cloud and artificial intelligence (AI) infrastructure, according to a Reuters report.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41055252/microns-ai-driven-hbm-demand-and-data-center-growth-to-fuel-stock-upside-analysts-s" rel="noreferrer noopener">Micron&#8217;s AI-Driven HBM Demand and Data Center Growth to Fuel Stock Upside, Analysts Say</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23.png" alt="" class="wp-image-569372" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The company&#8217;s ConectAI program will train 5 million people with AI skills over the next three years. Microsoft already has two Azure regions: one in São Paulo state, which it launched in 2014, and another in Rio de Janeiro, which it launched in 2020.
Earlier this week, Microsoft <a target="_blank" href="https://www.benzinga.com/government/24/09/41020845/microsoft-invests-1-3b-to-boost-ai-skills-and-infrastructure-in-mexico" rel="noreferrer noopener">earmarked $1.3 billion</a> over the next three years to drive Mexico&#8217;s AI infrastructure and initiatives, including training 5 million people. Microsoft also collaborated with BlackRock, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) and other partners, forging a fresh $30 billion investment fund to <a target="_blank" href="https://www.benzinga.com/news/24/09/40909973/blackrock-microsoft-others-team-up-for-30b-artificial-intelligence-fund-help-us-fuel-ai-innovation-a" rel="noreferrer noopener">tap the AI wave</a>.
Google is eyeing a $3.3 billion investment in South Carolina to build two new data centers. The search engine giant&#8217;s plans included two new data center campuses in Dorchester County and expanding its existing data center campus in Berkeley County, Reuters cites the South Carolina governor&#8217;s office as saying.
Alphabet committed $2 billion to the Dorchester County facilities, potentially creating 200 new operational jobs. According to Reuters, the company also earmarked $1.3 billion for Berkeley County.
Another positive update for the industry is the <a target="_blank" href="https://www.ft.com/content/ff0ca77d-ad35-45ba-a493-201a26932efb" rel="noreferrer noopener">report</a> indicating struggling chipmaker Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and the U.S. government are trying to finalize the $8.5 billion in direct funding for the chipmaker before the end of the year.
Therefore, Intel&#8217;s exploration of stake sales to companies like Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) could also disrupt its chances of bagging the subsidy over antitrust grounds. Intel had already faced <a target="_blank" href="https://www.benzinga.com/m-a/24/08/40648165/intel-weighs-major-business-split-factory-delays-amid-strategic-review-report" rel="noreferrer noopener">Senator scrutiny over</a> its cost-cutting measures as the subsidy aims to create additional U.S. jobs.
Semiconductor ETFs VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) gained 5%-6% in the last 5 days.
Price Actions: INTC stock is up 1.21% to $24.21 premarket at last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/41054106/meta-analysts-highlight-ai-vr-advances-see-growth-pushing-it-toward-apple-like-valuation" target="_blank" rel="noreferrer noopener">Meta Analysts Highlight AI, VR Advances, See Growth Pushing It Toward Apple-Like Valuation</a></li>
</ul>
Image Via Shutterstock

AMZN

GOOG

GOOGL

MSFT

Microsoft, Google, Meta Pave Path to AI Expansion, Nvidia and Broadcom Set to Reap Benefits

On Wednesday, Synopsys, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n41033101/synopsys-and-tsmc-pave-the-path-for-trillion-transistor-ai-and-multi-die-chip-design" rel="noreferrer noopener">announced its continued</a> collaboration with Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) to deliver advanced EDA and IP solutions on the contract chipmaker&#8217;s most advanced process and 3DFabric technologies, accelerating innovation for AI and multi-die designs.
&#8220;Synopsys&#8217; certified Custom Compiler and PrimeSim solutions provide the performance and productivity gains that enable our designers to meet the silicon demands of high-performance analog design on the Taiwan Semiconductor N2 process,&#8221; said&nbsp;Ching San Wu, Corporate VP at MediaTek.
In addition, Synopsys is collaborating with Taiwan Semiconductor on the new backside routing capabilities.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/09/41007184/taiwan-semi-secures-7-5b-boost-for-arizona-expansion-aims-for-advanced-chip-production-report" rel="noreferrer noopener">Taiwan Semi Secures $7.5B Boost for Arizona Expansion, Aims for Advanced Chip Production: Report</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png" alt="" class="wp-image-567584" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The electronic design automation company supports the contract chipmaker&#8217;s A16 process in the Synopsys digital design flow to address power distribution and signal routing for design performance efficiency and density optimization.&nbsp;
&#8220;Our collaboration with&nbsp;Synopsys and Taiwan Semiconductor exemplifies our collective commitment to driving innovation and enabling the future of AI and multi-die chip design,&#8221; said&nbsp;John Lee, vice president and general manager of the semiconductor, electronics, and optics business at Ansys Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>).
Ansys and Taiwan Semiconductor recently collaborated with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to speed up <a target="_blank" href="https://www.benzinga.com/news/24/09/41008834/ansys-taiwan-semiconductor-microsoft-team-up-to-supercharge-next-gen-chip-simulations" rel="noreferrer noopener">photonic chip simulations</a>.
Semiconductor stocks, including Synopsys and Taiwan Semiconductor stocks, are trading upwards Thursday in solidarity with Micron Technology, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41034733/micron-q4-earnings-revenue-eps-beat-on-robust-ai-demand-company-sees-significantly-improved-profita" rel="noreferrer noopener">upbeat quarterly print</a>.
The <a target="_blank" href="https://www.benzinga.com/government/24/09/40938590/whats-going-on-with-ai-related-stocks-nvidia-amd-broadcom-and-super-micro-on-thursday" rel="noreferrer noopener">semiconductor industry is</a> riding high on the AI wave, and the U.S. Fed rate cuts are providing an additional tailwind for the sector.
Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions: At the last check on Thursday, SNPS stock was up 0.90% at $514.95, and TSM stock was up 1.99% at $185.99.

ANSS

SNPS

Synopsys Partners With Taiwan Semi To Power Next-Gen AI Chip Innovations

Wall Street is in full risk-on mode following the Federal Reserve&#8217;s landmark decision to slash interest rates by 50 basis points, signaling further cuts as inflation approaches <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40938732/wall-street-ramps-up-interest-rate-cut-bets-after-fed-meeting-the-hard-landing-crow">the central bank&#8217;s target.</a>
The S&amp;P 500 and Dow Jones both set fresh record highs during the morning session in New York, buoyed by strong performances from the Magnificent Seven tech giants.
By midday, these elite tech stocks added over $500 billion in market value, boosting their combined market capitalization to $15.9 trillion.
Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) led the rally, surging nearly 7% and hitting a two-month peak, while NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) climbed 5%, driving the semiconductor sector higher.
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) jumped 4.6%, fully erasing its losses from September.
The Nasdaq 100 rose 2.9%, on pace for its strongest session in over a month and outperforming other major indices. Small caps joined the rally, with the Russell 2000 index surging 2%.
Commodities rallied across the board: Gold, silver, and copper increased by 1.2%, 3.8%, and 1.8%, respectively. Oil prices, tracked by the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), spiked over 3%.
The bullish sentiment extended to cryptocurrencies, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rising over 2%, poised to close at its highest level since late August.
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,905.70</td>
<td>2.9%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,249.90</td>
<td>2.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,720.74</td>
<td>1.8%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,002.90</td>
<td>1.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:25 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent091924&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.8% higher to $571.52.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.2% to $421.23.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 2.8% to $484.99.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.9% to $223.63.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 0.2%. The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 0.9%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Darden Restaurants Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) soared 9%, in response to its quarterly earnings and bullish outlook for upcoming quarters. </li>
<li>Also reacting to earnings reports was FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) up 5%.</li>
<li>Companies expected to report earnings after the close include FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) and Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>).</li>
</ul>
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40937291/bank-stocks-hit-inflection-point-after-feds-50-basis-point-cut-analyst-reveal-top-p">• Bank Stocks Hit Inflection Point After Fed&#8217;s 50 Basis Point Cut, Analyst Reveals Top Picks</a> Images was created using artificial intelligence DALL-E

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

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$BTC

TSLA

Wall Street Breaks Records, Chipmakers Rally, Tesla Hits 2-Month High As Fed Cut Drives Risk-On Mode: What's Driving Markets Thursday?

Wednesday, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) promoted Rose Castanares, executive vice president of the Arizona unit, as president.
Castanares, who joined the Taiwanese contract chipmaker in 1998, will take over Brian Harrison on October 1, who will retire on December 31, the Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2024/09/19/2003823993" rel="noreferrer noopener">cites</a> in a company statement.
TSM stock is trading higher on Thursday as the U.S. Federal Reserve <a target="_blank" href="https://in.benzinga.com/markets/equities/24/09/40932103/it-stocks-on-the-rise-after-u-s-fed-cuts-interest-rate" rel="noreferrer noopener">slashed its benchmark</a> interest rate by 50 basis points, setting the interest rate at 4.75%-5% to&nbsp;spur demand for discretionary spending from U.S. companies.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40904754/amazons-leaner-structure-and-ai-chip-partnership-with-intel-could-boost-growth-bofa" rel="noreferrer noopener">Amazon&#8217;s Leaner Structure and AI Chip Partnership with Intel Could Boost Growth: BofA Analyst</a>
The <a target="_blank" href="https://www.benzinga.com/government/24/04/38249052/samsung-secures-6-4b-from-us-for-texas-chip-factory-after-nvidia-supplier-tsmcs-breakthrough" rel="noreferrer noopener">contract chipmaker recently raised</a> its U.S. investment by more than 60% to $65 billion, as the country granted a $6.6 billion federal grant and provided $5 billion in loans.
TSMC is a key artificial intelligence chip supplier for Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and is building two advanced fabs in Arizona, leveraging the 4nm, 3nm, and 2nm processes.
It is also eyeing a third fab in Arizona, leveraging the 2nm process. Earlier this year, the company won approval to infuse $7.5 billion in the Arizona unit, reflecting its conviction in the <a target="_blank" href="https://www.benzinga.com/news/24/09/40928754/what-has-taiwan-semiconductor-stock-done-since-nvidia-earnings" rel="noreferrer noopener">artificial intelligence frenzy</a>, which it also voiced at the Semicon Taiwan industry forum in Taipei.
Recent reports also indicated Taiwan Semiconductor bagging at least two smartphone chip deals concerning Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and Apple. Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) Samsung Foundry recently lost out on the Pixel 10 and Pixel 11 chip deals to Taiwan Semiconductor&#8217;s chipmaking technology.
A separate report indicated that Taiwan Semiconductor has started making Apple&#8217;s iPhone chip A16 SoC at the Arizona unit, leveraging its 5nm N4 technology.
Taiwan Semiconductor stock has risen 90% in the last 12 months. Investors can gain exposure to semiconductor stocks through&nbsp;the VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;the&nbsp;iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock is up 3.88% at $173.78 at the last check on Thursday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/m-a/24/09/40926078/nvidia-considers-165m-octoai-acquisition-aims-to-strengthen-ai-and-cloud-dominance" target="_blank" rel="noreferrer noopener">Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance</a></li>
</ul>
Photo by Sundry Photography on Shutterstock

SSNLF

What's Going On With Taiwan Semiconductor Stock On Thursday?

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) stock lost 4% in the last 30 days. Last month saw volatility as Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) released its quarterly print and more.
The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), representing the semiconductor industry, have lost ~7% in the last 30 days. Now, let&#8217;s run down the events for Taiwan Semiconductor since Nvidia released its quarterly print.
On August 28, Nvidia reported <a target="_blank" href="https://www.benzinga.com/trading-ideas/24/08/40652614/nvidia-shatters-revenue-records-with-a-staggering-30-billion-quarter-yet-sees-stock-prices-slide-se" rel="noreferrer noopener">second-quarter topline</a> growth of 122% to $30.04 billion, quashing the&nbsp;analyst consensus of $28.68 billion.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png" alt="" class="wp-image-554700" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">Intel Looks To Restructure Foundry Business, Bags Major US Deal and Government Grants</a>
The company projected third-quarter revenue of $31.85 billion—$33.15 billion, versus the consensus of $31.77 billion.
Still, the stock dropped by <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40614118/nvidia-leads-semiconductor-stocks-lower-following-q2-earnings-what-investors-need-to-know" rel="noreferrer noopener">6% in after-hours trading</a>, sending semiconductor stocks, including Taiwan Semiconductor, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), down as the print failed to impress the Street.
The semiconductor sector selloff <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40684198/nvidia-tsmc-lead-chip-stocks-lower-in-premarket-whats-going-on" rel="noreferrer noopener">continued in September</a>, with U.S.-China geopolitical tensions intensifying due to the Western counterpart&#8217;s artificial intelligence technology embargo on the Asian counterpart.
Meanwhile, Taiwan Semiconductor remained invested in solidifying its moat by <a target="_blank" href="https://www.benzinga.com/news/24/09/40686890/apple-nvidia-key-supplier-tsmc-leads-taiwanese-chip-giants-to-localize-neon-gas-production-by-2025" rel="noreferrer noopener">localizing neon gas production</a>, a key chipmaking material disrupted by the Ukraine war, and fast-tracking the development of silicon photonics to address the energy and data transmission speeds <a target="_blank" href="https://www.benzinga.com/news/24/09/40687807/whats-going-on-with-taiwan-semiconductor-stock-on-tuesday" rel="noreferrer noopener">needed by AI computing</a>.
Taiwan Semiconductor <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">projected a 50%</a> growth in AI accelerators at the Semicon Taiwan industry forum in Taipei despite concerns over the sustainability of the AI frenzy, which is sending jitters across the market. Broadcom Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly print and guidance did little to contain <a target="_blank" href="https://www.benzinga.com/news/24/09/40754938/semiconductor-etfs-take-a-beating-dragged-lower-by-nvidia-amd-and-broadcom-stocks" rel="noreferrer noopener">the semiconductor selloff</a>.
On the brighter side, reports indicated that the contract chipmaker&#8217;s production yield at the Arizona facility is at par with<a target="_blank" href="https://www.benzinga.com/government/24/09/40773084/taiwan-semiconductors-us-plant-matches-taiwan-production-yields-stock-gains" rel="noreferrer noopener"> its Taiwan facilities</a>.
Taiwan Semiconductor reported <a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">33% topline growth</a> in&nbsp;August 2024, testimony to the smartphone market recovery and continued demand for&nbsp;Nvidia AI chips. Analysts expect third-quarter revenue growth of 37%.
Some of Taiwan Semiconductors key September wins included a Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google smartphone deal&nbsp;involving <a target="_blank" href="https://www.benzinga.com/news/24/09/40833611/google-picks-taiwan-semiconductor-for-pixel-chips-samsung-loses-key-deal-report" rel="noreferrer noopener">Pixel 10 and Pixel 11 chips</a> and Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) A16 chip at <a target="_blank" href="https://www.benzinga.com/news/24/09/40920976/taiwan-semiconductor-begins-production-of-apple-a16-smartphone-chips-at-arizona-facility-report" rel="noreferrer noopener">its Arizona Fab</a>.
Taiwan Semiconductor is up over 90% in the last 12 months as it led the&nbsp;global foundry market, commanding a 62% share in the <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">second quarter of 2024</a>.
Price Action: TSM stock closed at $167.28 on Wednesday.
Image via Shutterstock

What has Taiwan Semiconductor Stock Done Since Nvidia Earnings?

Editor&#8217;s note: This story has been updated to correct the headline and to reflect that odds of a larger Federal Reserve interest rate cut fell after Tuesday&#8217;s economic data. The story has been updated with additional information on Federal Reserve rate cut probabilities. 
U.S. retail sales rose more than expected by 0.1% month-over-month in August, signaling a resilient consumer spending momentum in the middle <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40883023/how-second-tier-economic-data-tuesday-could-sway-the-feds-rate-decision-it-will-be-">of the third quarter.</a>
Retail sales slowed significantly from July&#8217;s upwardly revised growth; however, as they increased more than anticipated, this could boost the chances of a smaller interest rate cut when the Federal Open Market Committee releases its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40878710/investors-bet-on-50-basis-point-rate-cut-wall-street-analysts-urge-caution-this-is-">interest rate decision Wednesday</a>. 
Before the retail sales data was released, market-implied probabilities pointed to a 67% chance of a 50-basis-point rate cut, compared to a 33% likelihood of a smaller 25-basis-point cut, according to CME&#8217;s FedWatch tool. As of midday Tuesday, FedWatch shows a 63% chance of a larger 50-basis-point cut and a 37% chance of a 25-basis-point cut. 
<h3 class="wp-block-heading">August Retail Sales Report: Key Highlights</h3>
<ul>
<li>Retail sales rose by 0.1% on a monthly basis in August, beating the expected 0.2% decline as per TradingEconomics&#8217; consensus.</li>
<li>July&#8217;s retail sales growth was upwardly revised from 1% to 1.1%. </li>
<li>On a year-over-year basis, retail sales eased from the upwardly revised 2.9% in July to 2.1% in August. </li>
<li>Excluding motor vehicles and parts, sales grew by 0.1% month-over-month, below the 0.4% growth in July and missing the expected 0.2% increase.</li>
<li>When excluding gasoline, motor vehicles, and parts, sales rose by 0.2% month-over-month in August, a slowdown from the 0.4% gain in July, and below the expected 0.3%</li>
<li>Among spending categories, the largest monthly gains were recorded in miscellaneous store retailers, up 1.7%, and nonstore retailers, up 1.4%. </li>
<li>Conversely, gasoline station, electronics and appliance stores experienced the steepest monthly decline, with sales dropping by 1.2% and 1.1% respectively.</li>
</ul>
<h3 class="wp-block-heading">Market Reactions: Dollar Strengthens, Treasury Yields Rise</h3>
The U.S. Dollar Index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – strengthened following the retail sales report, driven by rising Treasury yields. 
Yields on the policy-sensitive 2-year Treasury note surged by about 5 basis points to 3.59%, indicating falling odds for a larger Fed rate cut.
Stocks inched higher during Tuesday&#8217;s premarket trading, with futures on the S&amp;P 500 up 0.4% at 08:50 a.m. in New York. Nasdaq 100 futures were 0.6% higher. 
On Monday, tech stocks closed in the red, with the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) falling 0.4%, dragged down by chipmakers as the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) tumbled 1.3%
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40895240/wall-street-could-head-higher-as-traders-look-forward-to-retail-sales-data-ahead-of-fed-decision">Wall Street Could Head Higher As Traders Look Forward To Retail Sales Data Ahead Of Fed Decision, Tech Stocks On The Mend: Strategist Flags This As Best-Case Scenario For Market This Week</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Retail Sales

Retail Sales Rise 0.1% In August, More Than Expected, Trimming Odds Of Larger Fed Rate Cut (CORRECTED)

Tech stocks kicked off the week on the negative note, driven lower by concerns over weaker-than-expected demand for Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)&#8217;s <a href="https://www.benzinga.com/news/24/09/40882969/iphone-16-pro-demand-lags-longer-wait-times-globally-china-shows-smaller-gap-analyst">latest iPhone 16 models</a>. 
Shares of Apple tumbled over 3% by midday in New York, heading for their worst session in more than a month. The sell-off in Apple spilled over to chip stocks, with Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) plunging more than 5%.
The broader semiconductor sector, tracked by the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), declined by 2.2%, reflecting widespread apprehension in the industry.
Elsewhere in the market, the S&amp;P 500 edged lower, while the Dow Jones and the Russell 2000 managed to buck the trend, posting modest gains for the day.
Bonds outperformed equities as Treasury yields dropped amid growing expectations of Federal Reserve rate cuts. 
Over the weekend, investor sentiment shifted toward an interest rate cut for the upcoming Sept. 18 meeting, with markets now pricing in a 60% probability of a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40883023/how-second-tier-economic-data-tuesday-could-sway-the-feds-rate-decision-it-will-be-">larger 50-basis-point rate cut.</a>
Gold prices extended their gains, rising 0.3% to reach new record highs, marking the third consecutive session of increases. In the energy market, oil prices climbed 0.7%, and natural gas prices surged 4% on a more optimistic demand outlook.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) wasn&#8217;t spared from the sell-off in tech stocks, falling 2.5%.
<h1 class="wp-block-heading">Monday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,490.08</td>
<td>0.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,192.30</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,621.31</td>
<td>-0.1%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,377.78</td>
<td>-0.7%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></figure>
According to Benzinga Pro data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.1% lower to $561.66.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.4% to $416.43.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.8% to $471.63.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.2% to $217.28.</li>
<li>The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 1.2%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 0.7%.</li>
</ul>
<h1 class="wp-block-heading">Monday&#8217;s Stock Movers</h1>
<ul>
<li>Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) jumped 6% after multiple analysts raised their price targets for the stock.</li>
<li>Lattice Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>) surged over 11% following the appointment of its new CEO, Ford Tamer.</li>
<li>In addition to Arm Holdings, other notable chipmakers that declined on Monday included Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), which fell 5.3%; Wolfspeed Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NASDAQ">WOLF</a>), down 9%; and Qorvo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>), which slid 7%. </li>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was 2% lower. </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40883274/senator-warren-urges-fed-to-slash-rates-by-0-75-veteran-investor-warns-even-0-5-cut">Elizabeth Warren Urges Fed To Slash Rates By 0.75%; Veteran Investor Warns Even 0.5% Cut Could &#8216;Reduce Trump&#8217;s Chances Of Winning&#8217;</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

Mid Cap

Bonds

Small Cap

LSCC

ORCL

QRVO

WOLF

XLRE

Nasdaq 100 Falls As Apple Weighs On Chipmakers; Bonds Rise As Investors Eye 0.5% Rate Cut: What's Driving Markets Monday?

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares came back up on Monday following the 14% decline they clocked in the week ended Sept. 6. An equity market strategist <a href="https://www.benzinga.com/markets/equities/24/09/40785090/palantir-apple-nvidia-oracle-tesla-why-these-5-stocks-are-on-investors-radars-today">weighed in on the stock trajectory </a>and the artificial intelligence stalwart&#8217;s valuation.
Reasonable Valuation: Nvidia shares are trading at a 26 times multiple, in line with Coca-Cola and Procter &amp; Gamble but are poised to grow revenue by 30% in 2025 and by 20% the year after, said Chris Grisanti, chief equity strategist and portfolio manager at Mai Capital Management, in a CNBC interview. The valuation is fairly reasonable, he said. &#8220;So that's what makes us interested and that's what checks our boxes and it's also called Nvidia,&#8221; he added.
The strategist also said he wasn&#8217;t worried about the impact of a potential economic slowdown or inventory digestion by customers. &#8220;I'm not so afraid of that because they're not selling to consumers&#8230;..they're selling to Microsoft and Amazon AWS because these are businesses that are building out AI infrastructure,&#8221; he said.
Grisanti said these hyperscalers are stockpiling but they can afford it even if the economy goes south since they have long-term plans and they have cash to continue to fund it.
See Also: <a href="https://www.benzinga.com/money/how-to-buy-nvidia-stock">How To Buy Nvidia (NVDA) Stock</a>
Imminent Risks: Grisanti said he was worried about possible competitors. &#8220;But we really don't see that yet,&#8221; he added. He also <a href="https://www.benzinga.com/markets/equities/24/09/40768376/nvidia-faces-antitrust-probe-over-market-dominance-as-doj-ftc-crack-down-on-ai-powerhouses-repor">expressed worries about antitrust concerns, </a>which recently drove down the stock. 
The portfolio manager delved into valuation (based on forward price-earnings), which comes off as fairly inexpensive. &#8220;The market has a somewhat antiquated view of the semiconductor business,&#8221; he said, adding that semiconductors are to the 21st century what oil was to the 20th century.
A thriving economy can&#8217;t be had without semiconductors and these stocks have become less cyclical now than they were 10 to 15 years ago, Grisanti said. &#8220;AI is just this huge tailwind that can certainly get Nvidia through the next two to three years,&#8221; he added.
In premarket trading on Tuesday, Nvidia shares rose 0.24% to $106.73, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a> The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) edged down 0.17% to $207.61.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40764126/nvidia-down-14-last-week-no-problem-says-portfolio-manager-as-he-sees-revenue-and-s">Nvidia Down 14% Last Week – No Problem, Says Portfolio Manager, As He Sees Revenue And Stock Doubling Over In Next Several Years</a></li>
</ul>
Image via Shutterstock

Long Ideas

Nvidia Shares Riding On Huge AI Tailwind, Says Portfolio Strategist: Why Expert Says Stock Will Stay On An Upward Path For Next 2-3 Years

Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) is shifting its focus to the gaming GPU market, prioritizing a strategy to gain a larger market share. 
This approach marks a significant shift away from competing directly with Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) highest-end gaming GPUs, at least for now, Tom&#8217;s Hardware <a href="https://www.tomshardware.com/pc-components/gpus/amd-deprioritizing-flagship-gaming-gpus-jack-hyunh-talks-new-strategy-for-gaming-market" target="_blank" rel="noreferrer noopener">cites</a> Jack Huynh, AMD&#8217;s Senior Vice President and General Manager.
In an interview during IFA 2024, Huynh emphasized that AMD aims to capture 40%-50% of the total addressable market by focusing on mainstream and mid-range GPUs.
Nvidia currently holds 88% of the discrete GPU market, leaving AMD with just 12%, compelling the latter to focus on building scale.
AMD remains engaged in many activities to boost shareholder value as analysts continue to claim Nvidia as the key AI beneficiary.
Recently, AMD tapped Nvidia&#8217;s Keith Strier, <a target="_blank" href="https://www.benzinga.com/news/24/09/40707618/whats-going-on-with-amd-stock-on-wednesday" rel="noreferrer noopener">who was responsible</a> for boosting Nvidia&#8217;s commercial engagements with foreign governments. AMD also shared <a target="_blank" href="https://www.benzinga.com/news/24/09/40707618/whats-going-on-with-amd-stock-on-wednesday" rel="noreferrer noopener">plans to snap</a> AI server company&nbsp;ZT Systems&nbsp;for $4.9 billion as its Ryzen 9000 series failed to gain traction.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5.png" alt="" class="wp-image-537426" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
AMD has been up 28% in the last 12 months versus Nvidia, which has gained 128%.
Semiconductor and AI-linked stocks, including Nvidia and AMD, faced a continued selloff despite strong quarterly results from Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>). VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) dropped over 12% in the past five days.
Price Actions: AMD stock is up 1.37% at $136.20 at the last check on Monday. NVDA is up 1.22% at $104.05.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

AMD vs. Nvidia: AMD's Surprising Strategy Shift in Gaming GPU Battle

Benzinga examined the prospects for<a href="http://www.benzinga.com/trading-ideas"> many investors&#8217; favorite stocks</a> over the last week — here&#8217;s a look at some of our top stories.
The S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), experienced its sharpest weekly decline in over 18 months, marking the largest drop since the March 2023 banking crisis.
A weaker labor market report prompted investors to reduce risk exposure after three consecutive weeks of gains, leading to a broad selloff. 
On Friday, the S&amp;P 500 fell 1.7%, bringing its weekly loss to 4.1%, while tech stocks saw even steeper declines, as tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>). 
The semiconductor sector, represented by the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), took the biggest hit, dropping 4.3% on Friday and ending the week down 11.8%, its worst performance <a href="https://www.benzinga.com/markets/equities/24/09/40756864/s-p-500-suffers-largest-weekly-drop-since-march-2023-banking-crisis-chipmakers-notch-worst-week-">since March 2020.</a>
Benzinga provides daily reports on the stocks most popular with investors. Here are a few of this past week&#8217;s most bullish and bearish posts that are worth another look.
<h3 class="wp-block-heading">The Bulls</h3>
&#8220;<a href="https://www.benzinga.com/markets/equities/24/09/40680914/nvidia-takes-a-page-from-apples-playbook-jensen-huang-wants-ai-stalwart-to-go-beyond-chips-and-b">Nvidia Takes A Page From Apple&#8217;s Playbook: Jensen Huang Wants AI Stalwart To Go Beyond Chips And Be One-Stop Shop For Data Center Clients</a>,&#8221; by <a href="https://www.benzinga.com/author/shanthi-rexaline">Shanthi Rexaline</a>, outlines how Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang aims to transform the company into a complete AI solution provider, offering software, networking, and services beyond just AI chips.
&#8220;<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40673895/elon-musk-thinks-dogecoin-payments-could-potentially-help-starlink-get-around-brazil-freez">Elon Musk Thinks Dogecoin Payments Could Potentially Help Starlink Get Around Brazil Freezing Its Bank Accounts</a>,&#8221; by <a href="https://www.benzinga.com/author/anan-ashraf">Anan Ashraf</a>, discusses how Elon Musk is considering using Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) for SpaceX&#8217;s Starlink services in Brazil after the country&#8217;s Supreme Court froze Starlink's bank accounts over legal disputes.
&#8220;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40734889/amazon-analyst-says-companys-dominant-competitive-position-in-e-commerce-aws-provid">Amazon Analyst Says Company's ‘Dominant Competitive Position' In Ecommerce, AWS ‘Provides A Lot To Be Bullish About&#8217;</a>,&#8221; by <a href="https://www.benzinga.com/author/chris-katje">Chris Katje</a>, highlights Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) strong competitive positioning in e-commerce and cloud (AWS), emphasizing potential upside from generative AI adoption and ongoing logistics efficiencies.
For additional bullish calls of the past week, check out the following:
<a href="https://www.benzinga.com/markets/equities/24/09/40681461/nancy-pelosis-stock-pick-broadcom-poised-for-breakout-after-recent-consolidation-she-never-loses">Nancy Pelosi&#8217;s Stock Pick Broadcom Poised For Breakout After Recent Consolidation: &#8216;She Never Loses,&#8217; Says Social-Media User</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40693887/apple-nvidia-will-lead-3-to-5-year-tech-bull-run-analyst-says-i-am-a-buyer-here">Apple, Nvidia Will Lead 3-To-5-Year Tech Bull Run, Analyst Says: &#8216;I Am A Buyer Here&#8217;</a>
<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40722735/trump-presidency-will-be-total-game-changer-for-crypto-industry-says-pro-bitcoin-senator-c">Trump Presidency Will Be &#8216;Total Game Changer&#8217; For Crypto Industry, Says Pro-Bitcoin Senator Cynthia Lummis: Forsees &#8216;Uphill Battle&#8217; If Kamala Harris Wins</a>
The Bears
&#8220;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40686596/google-doj-trial-drama-to-hit-earnings-by-up-to-10-says-jpmorgan-status-quo-is-no-l">Google, DOJ Trial Drama To Hit Earnings By Up To 10%, Says JPMorgan: Status Quo Is No Longer Possible</a>,&#8221; by <a href="https://www.benzinga.com/author/surbhi-jain">Surbhi Jain</a>, outlines how Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) faces potential financial hits due to DOJ trial remedies, with possibilities ranging from opening up search distribution channels to rivals to a worst-case scenario of Chrome or Android breakups, potentially reducing earnings by 10-20%.
&#8220;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40696588/exclusive-apples-iphone-16-launch-will-be-disappointment-before-the-excitement-gene">EXCLUSIVE: Apple&#8217;s iPhone 16 Launch Will Be &#8216;Disappointment Before The Excitement,&#8217; Gene Munster Says</a>,&#8221; by <a href="https://www.benzinga.com/author/michael-juliano">Michael Juliano</a>, reports that Gene Munster of Deepwater Asset Management expects Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) shares to dip initially after the iPhone 16 launch, but predicts significant revenue growth in the coming year.
&#8220;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40730038/tesla-bear-slams-fsd-china-release-timeline-as-meaningless-announcement-calls-it-ov">Tesla Bear Slams FSD China Release Timeline As &#8216;Meaningless Announcement,&#8217; Calls It Overused &#8216;Pump&#8217; Tactic Amid Share Price Decline</a>,&#8221; by <a href="https://www.benzinga.com/author/anan-ashraf">Anan Ashraf</a>, reports how Gordon Johnson, CEO of GLJ Research, criticizes Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) for announcing a 2025 timeline for Full Self-Driving (FSD) in China and Europe, calling it a stock-pumping strategy amid falling earnings.
For more bearish takes, be sure to see these posts:
<a href="https://www.benzinga.com/markets/cryptocurrency/24/09/40679694/bitcoin-mining-revenue-tanks-to-an-11-month-low-in-august-industry-bellwether-marathon-dig">Bitcoin Mining Revenue Tanks To An 11-Month Low In August, Industry Bellwether Marathon Digital Shares Sank Over 13% In The Month</a>
<a href="https://www.benzinga.com/trading-ideas/technicals/24/09/40691352/stock-of-the-day-berkshire-hathaway-trades-above-usual-range-time-to-sell-the-warren-buf">Stock Of The Day: Berkshire Hathaway Trades Above Usual Range — Time To Sell The Warren Buffett Stock?</a>
<a href="https://www.benzinga.com/news/24/09/40722943/microsoft-customers-reportedly-ditching-copilot-ai-office-tools-but-top-analyst-thinks-it-is-just-gr">Microsoft Customers Reportedly Ditching Copilot AI Office Tools But Top Analyst Thinks It Is Just &#8216;Growing Pains:&#8217; &#8216;The Rub Against AI Is&#8230;&#8217;</a>
Keep up with all the latest breaking news and trading ideas by following<a href="https://twitter.com/Benzinga"> Benzinga</a><a href="http://twitter.com/Benzinga"> on Twitter</a>.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence via Midjourney.

Short Ideas

$DOGE

Benzinga Bulls And Bears: Nvidia, Apple, Tesla, Amazon – And Musk Responds To Idea Of Using Dogecoin For Starlink Payments In Brazil

The S&amp;P 500 index endured its sharpest weekly decline in over a year and a half — a drop that hasn't been seen since the <a href="https://www.benzinga.com/news/23/03/31502441/data-shows-exactly-how-big-banks-benefited-from-collapse-of-silicon-valley-bank-and-signature-bank">banking crisis in March 2023</a>.
A cooler labor market report prompted investors to reduce their risk exposure after <a href="https://www.benzinga.com/markets/equities/24/09/40754257/stocks-tumble-on-jobs-data-nasdaq-100-eyes-worst-week-in-2-years-as-semiconductors-slump-whats-d">three consecutive weeks of gains.</a>
On Friday, Wall Street experienced a strong &#8220;risk-off&#8221; session, with the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), closing 1.7% lower. This extended the weekly loss to 4.1%.
Tech stocks were hit even harder. The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which follows the performance of major tech stocks, plunged 2.6% on Friday. This resulted in a 5.8% weekly loss, the steepest since October 2022.
Semiconductors bore the brunt of the selling. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), a barometer for the semiconductor industry, sank 4.3% on Friday alone. Over the week, the sector was down 11.8%, its worst weekly performance since March 2020.
<h3 class="wp-block-heading">Cooling Employment Numbers Amplify Risk-Off Mood</h3>
Friday&#8217;s selloff was driven in large part by the latest labor market data. The U.S. economy added just 142,000 nonfarm payrolls in August, missing the forecast of 160,000 and significantly below the one-year average of 202,000 new jobs per month.
The unemployment rate ticked down slightly from 4.3% to 4.2%, in line with expectations, while wage growth provided a mild upside surprise. 
&#8220;We acknowledge that today&#8217;s employment report was weaker than we expected, but we don&#8217;t see a recession,&#8221; said veteran Wall Street investor Ed Yardeni. 
Yardeni highlighted that while employers are not laying off workers en masse, their demand for new hires has slowed down, even as the supply of labor has increased.
&#8220;The moderation in the labor market has been characterized by low layoffs and slowing hiring,&#8221; added Bank of America economist Shruti Mishra.
In response to the softer jobs data, Bank of America altered its forecast for Federal Reserve rate cuts. Previously, the bank had expected 25 basis point cuts per quarter beginning in September. Now, the firm foresees the Fed trimming rates by 25 basis points at each meeting for the next five sessions, bringing the policy rate down to 4% by March 2025.
<h3 class="wp-block-heading">Friday&#8217;s Major Drags On The S&amp;P 500 </h3>
Here's a breakdown of the five largest contributors to Friday&#8217;s decline in the S&amp;P 500:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Name</th>
<th>Weight (%)</th>
<th>Return (%)</th>
<th>Contribution (bps)</th>
</tr>
</thead>
<tbody>
<tr>
<td>NVIDIA Corporation</td>
<td>5.69</td>
<td>-4.04</td>
<td>-24</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>1.44</td>
<td>-10.35</td>
<td>-16</td>
</tr>
<tr>
<td>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>)</td>
<td>3.51</td>
<td>-3.64</td>
<td>-13</td>
</tr>
<tr>
<td>Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>1.38</td>
<td>-8.44</td>
<td>-13</td>
</tr>
<tr>
<td>Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>6.55</td>
<td>-1.63</td>
<td>-11</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Friday's Worst-Performing Semiconductor Stocks</h3>
The semiconductor sector faced particular challenges, with major names among the worst performers:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Name</th>
<th>Return (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Broadcom Inc. </td>
<td>-10.35</td>
</tr>
<tr>
<td>Wolfspeed, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NASDAQ">WOLF</a>)</td>
<td>-6.53</td>
</tr>
<tr>
<td>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)</td>
<td>-5.37</td>
</tr>
<tr>
<td>Rambus Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMBS#NASDAQ">RMBS</a>)</td>
<td>-5.28</td>
</tr>
<tr>
<td>Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>)</td>
<td>-5.25</td>
</tr>
</tbody>
</table>
</figure>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40741279/ai-tech-sector-is-not-in-a-bubble-but-diversification-out-of-magnificent-7-is-key-g">AI Tech Sector &#8216;Is Not In A Bubble,&#8217; But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says</a></li>
</ul>
Image: Shutterstock

ASML

RMBS

S&P 500 Suffers Largest Weekly Drop Since March 2023 Banking Crisis, Chipmakers Notch Worst Week In Over Four Years

<a href="https://www.benzinga.com/24/09/40676774/september-market-seasonality-why-this-month-is-historically-the-toughest-for-investors">September&#8217;s notorious volatility</a> has once again gripped the markets as cooling jobs data spurred Wall Street into its worst week of the year.
In August, the U.S. economy added 142,000 jobs — a rebound from July's disappointing 89,000 figure but below expectations of 160,000 and significantly lower than the average pace of 202,000 <a href="https://www.benzinga.com/news/large-cap/24/09/40750261/wall-street-sighs-in-relief-as-august-jobs-numbers-ease-recession-fears-small-caps-outperform-doll">over the past year.</a>
While the unemployment rate edged down slightly from 4.3% to 4.2% as expected — and wage growth exceeded estimates — these figures did little to sway market sentiment. Labor data released during the week simply <a href="https://www.benzinga.com/economics/24/09/40750422/fridays-jobs-report-is-the-moment-weve-all-been-waiting-for-economist-says">failed to meet expectations.</a>
As a result, traders are now placing a higher probability on the Federal Reserve cutting interest rates by 50 basis points rather than 25 <a href="https://www.benzinga.com/markets/equities/24/09/40752387/treasury-yields-plunge-tlt-etf-tops-100-vix-spikes-as-50-basis-point-rate-cut-odds-soar-in-respo">basis points in September.</a>
Semiconductors were hit by several headwinds, including reports of a potential antitrust investigation into Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) by the<a href="https://www.benzinga.com/news/large-cap/24/09/40716723/nvidia-hit-with-double-whammy-as-doj-probes-on-heels-of-earnings-selloff-market-reacts"> Department of Justice </a>and disappointing guidance from major chipmaker Broadcom.
The Philadelphia Semiconductor Index, tracked by the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), endured its worst week in over two years. Nvidia's shares extended their biweekly losses to over 20%.
See Also: <a href="https://www.benzinga.com/general/politics/24/09/40731719/goldman-sachs-kamala-harris-victory-bodes-well-for-us-economy-trump-tariffs-will-drive-up-inflat">Harris Administration Bodes Well For Economy, Trump Tariffs Will Drive Up Inflation</a>
<h3 class="wp-block-heading">Tax Reform Impact</h3>
Goldman Sachs warns of potential S&amp;P 500 earnings volatility under tax plans proposed by Kamala Harris and Donald Trump. Corporate tax changes could lead to significant swings in company profits, with implications for market performance, particularly in sectors sensitive <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40736085/s-p-500-earnings-could-face-major-swings-under-harris-or-trump-tax-plans-goldman-sa">to tax policy shifts.</a>
<h3 class="wp-block-heading">Ford In-Car Ads</h3>
Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>)&#8217;s new patent suggests displaying targeted ads inside vehicles based on location data. The technology could offer drivers advertisements relevant to their driving routes, potentially creating new revenue streams while raising questions about privacy and user <a href="https://www.benzinga.com/news/24/09/40719971/ford-to-show-advertisements-inside-vehicles-based-on-where-youre-driving-new-patent-could-make-targe">experience in connected cars.</a>
<h3 class="wp-block-heading">iPhone 16 Event</h3>
A Bank of America equity analyst suggests Apple Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) imminent iPhone 16 event may drive stock prices higher, countering the usual &#8220;sell the news&#8221; trend. Anticipated innovations and strong demand could positively impact investor sentiment, with shares potentially benefiting from <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40737548/apple-iphone-16-event-not-sell-the-news-analyst-says-shares-could-move-higher">the product launch excitement.</a>
<h3 class="wp-block-heading">Fake Ozempic Alert</h3>
Counterfeit Ozempic batches are flooding the weight loss market, posing serious health risks. Authorities are raising alarms as demand for the drug surges, increasing the circulation of these <a href="https://www.benzinga.com/general/biotech/24/09/40737027/fake-ozempic-targets-weight-loss-market-forged-batches-an-international-concern">dangerous, unauthorized products worldwide.</a>
Now read: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40741279/ai-tech-sector-is-not-in-a-bubble-but-diversification-out-of-magnificent-7-is-key-g">AI Tech Sector &#8216;Is Not In A Bubble,&#8217; But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says</a></li>
</ul>
Image: Shutterstock

September Volatility Returns As Labor Cools, Bets On Large Fed Rate Cut Intensify, Semiconductors Plunge: This Week In The Markets

Semiconductor, hardware, and artificial intelligence-linked stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are down as the sector continues to pull back.
AI stocks led by Nvidia, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) selloff continue their <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40746353/nvidia-super-micro-arm-tumble-2-in-premarket-most-chip-peers-deep-in-red-whats-dragging-down-sem" rel="noreferrer noopener">downward price trajectory</a> as the Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly prints failed to impress the Street.
Broadcom released its third-quarter earnings on Thursday. The <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu" rel="noreferrer noopener">topline grew 42%</a> to &nbsp;$13.07 billion in the third quarter, topping the analyst estimate of $12.96 billion. The chipmaker expects fourth-quarter revenue of $14 billion, above the analyst consensus of $12.70 billion. The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40740457/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend" rel="noreferrer noopener">adjusted gross margin</a> grew by 110 bps sequentially and 230 bps year-on-year to 77.4%.
JPMorgan analyst Harlan Sur projected upside, citing robust AI growth, VMware momentum, and recovery in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750949/broadcom-analysts-lifts-ai-revenue-forecast-to-12b-on-potential-strong-demand-from-" rel="noreferrer noopener">traditional semiconductor sectors</a>.
Last week, Nvidia&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">second-quarter topline</a> grew 122% to $30.04 billion, surpassing the analyst estimate of $28.68 billion. It expects third-quarter revenue of $31.85 billion-$33.15 billion versus the analyst consensus of $31.77 billion. The adjusted gross margin declined 320 bps sequentially and grew by 450 bps year-on-year.
BofA Securities analyst Vivek Arya maintained a bullish outlook backed by data center and AI training demand and <a target="_blank" href="https://www.benzinga.com/news/24/09/40737481/nvidias-future-tied-to-llms-and-gaming-despite-ai-capex-skepticism-remains-a-sector-favorite-analyst" rel="noreferrer noopener">supply chain recovery</a>.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), which tracks the overall performance of the 25 largest U.S.-listed companies that produce semiconductors, including Nvidia, Taiwan Semiconductor, Broadcom, and AMD, has been down 12% in the last five days. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 12% in the previous five days.
Nvidia has been down 15% in the last five days. AMD lost over 10%, and Taiwan Semiconductor lost 8%. The selloff refused to subside despite assurances from <a target="_blank" href="https://www.benzinga.com/news/24/09/40735058/taiwan-semis-supplier-dismisses-selloff-projects-strong-ai-growth-surge" rel="noreferrer noopener">contract chipmakers like</a> Taiwan Semiconductor and Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) regarding sustained AI demand.
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which corresponds to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors&nbsp;Index, lost 26% in the last five days.
ETFs with exposure to riskier indexes noted volatility during the period. ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>), which corresponds to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Semiconductors Index, gained 28% in the last five days.
The ETFs tracking broader indexes like the S&amp;P 500 and NASDAQ saw relatively lesser value losses due to Big Tech stocks like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 stock market index, including Big Tech stocks, lost 3.5% in the last five days. Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the NASDAQ index, lost 5% in the last five days.
Photo via Shutterstock

Specialty ETFs

FTXL

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

SOXQ

Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks

Investors showed little enthusiasm for the August jobs report, as the slower-than-expected hiring numbers deepened worries about <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40748557/job-creation-falls-short-of-expectations-in-august-unemployment-rate-ticks-lower-">a softening labor market.</a>
The U.S. economy added 142,000 nonfarm jobs in August, up from July's 89,000 but falling short of the projected 160,000. The unemployment rate edged down by 0.1% to 4.3%, in line with expectations, while wages saw stronger-than-anticipated growth, rising 0.4% month-over-month.
On Friday, markets shifted sharply into risk-off mode, with all major indices dropping over 1% by midday trading in New York. 
The CBOE Volatility Index (VIX) spiked over 17% to 23 points. The Nasdaq 100 led the decline, losing over 5% for the week, eyeing its worst performance since September 2022.
Semiconductors dragged down the tech-heavy index. The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) dropped nearly 5%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell more than 4%. The chipmaker giant extended the weekly loss to 14%, on track for its steepest decline since October 2022.
Investors dumped equities and moved into cash as the U.S. dollar strengthened despite weaker-than-expected nonfarm payroll data.
In the bond market, short-term Treasury yields tumbled, bringing the yield curve back to a normal shape after two years of inversion. The two-year Treasury yield fell below the 10-year, signaling a shift in economic outlook.
Commodities took heavy losses across the board. Gold dropped 0.9%, silver plunged 3.1% and crude oil (WTI) slid 3%, reaching $66 per barrel, the lowest since May 2023.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also dropped, losing over 3%, as investors steered clear of crypto assets amid a broad-based decline in risk appetite.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>40,320.98</td>
<td>-1.1%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,406.64</td>
<td>-1.8%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,092.33</td>
<td>-2.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,424.39</td>
<td>-2.7%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent090624&amp;t=be2bearmibe3na1">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 1.8% lower to $539.77.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 1.1% to $404.13.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) tumbled 2.7% to $448.38.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 2.2% to $207.31.</li>
<li>The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, flat for the day, while the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 3%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) tumbled 9.9%, on track for its worst session since March 2020, following weaker-than-expected guidance.</li>
<li>Other stocks reacting to earnings included Samsara Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IOT#NYSE">IOT</a>), up 13%, Guidewire Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>), up 11.8% and DocuSign Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DOCU#NASDAQ">DOCU</a>), up 3.9%. </li>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) plummeted over 7% as JPMorgan downgraded the rating from Buy to Neutral and sharply lowered its price target from $950 to $500. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40741279/ai-tech-sector-is-not-in-a-bubble-but-diversification-out-of-magnificent-7-is-key-g">AI Tech Sector &#8216;Is Not In A Bubble,&#8217; But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says</a></li>
</ul>
Photo created using artificial intelligence via Dall-E.

DOCU

GWRE

Select Sector SPDR-Consumer Discretionary

Stocks Tumble On Jobs Data, Nasdaq 100 Eyes Worst Week In 2 Years As Semiconductors Slump: What's Driving Markets Friday?

Wall Street breathed a sigh of relief Friday after the August jobs report signaled economic resilience, calming recession fears that had escalated following weak labor data in July and <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40748557/job-creation-falls-short-of-expectations-in-august-unemployment-rate-ticks-lower-">earlier this week.</a>
The U.S. economy added 142,000 nonfarm payrolls in August, up from the previous month's downwardly revised 89,000 but falling short of the expected 160,000.
The unemployment rate dropped to 4.2%, meeting expectations, while wage growth showed strength. Average hourly earnings advanced by 0.4% to $35.21, surpassing the 0.3% forecast. On a year-over-year basis, wages rose 3.8%, beating July's 3.6% and the 3.7% consensus estimate. 
<h3 class="wp-block-heading">Market Reactions</h3>
Initial market reactions saw the dollar swing lower and traders increasingly bet on a potential 50-basis-point rate cut from the Federal Reserve, driven by the headline payrolls miss. A deeper dive into the report — which revealed stronger wage growth and a dip in unemployment — helped ease recession concerns.
Expectations for a 50-basis-point rate cut surged to 59% by 9 a.m. in New York before retreating to 45%, as per CME Group&#8216;s FedWatch tool.
<ul>
<li>S&amp;P 500: The S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), was down 0.19% shortly before 10 a.m. Friday. </li>
<li></li>
<li>Tech Stocks: The Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which monitors tech-heavy Nasdaq stocks, is down 0.95%. </li>
<li>Semiconductors: The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) is down 2.24%, pressured by a 9.65% slump in Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) following its earnings report.</li>
<li>Small Caps: The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) gained 0.14%, buoyed by strength in smaller companies.</li>
<li>Dollar Index: The Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) rose 0.25%, reversing early losses.</li>
<li>Treasury Yields: Yields on 10-year Treasury notes edged up by 2 basis points to 3.75%.</li>
<li>Gold: The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) fell 0.21%, as the dollar firmed and risk sentiment improved.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40741279/ai-tech-sector-is-not-in-a-bubble-but-diversification-out-of-magnificent-7-is-key-g">AI Tech Sector &#8216;Is Not In A Bubble,&#8217; But Diversification Out Of Magnificent 7 Is Key, Goldman Sachs Says</a></li>
</ul>
Illustration created using artificial intelligence via Midjourney.

Wall Street Sighs In Relief As August Jobs Numbers Ease Recession Fears: Small Caps Outperform, Dollar Trims Weekly Losses

Nvidia Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recovery could prove short-lived as the stock was trading sharply lower<a href="https://www.benzinga.com/premarket"> in premarket trading </a>on Friday. 
The weakness could in part be due to the <a href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu">disappointing guidance issued by fellow chipmaker</a> Broadcom Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>). The company&#8217;s third-quarter earnings and revenue exceeded the consensus and it even raised it 2024 artificial intelligence revenue forecast from $11 billion to $12 billion. The fourth-quarter revenue guidance of $14 billion was, however, shy of estimates of some analysts.
This dragged the stock down by about 9% in premarket trading. As has been the case with Nvidia, investors&#8217; hyped expectations may have been the reason for the negative sentiment.
See Also: <a href="https://www.benzinga.com/money/best-semiconductor-stocks">Best Semiconductor Stocks</a>
Semiconductor companies are mostly growth stocks, considered risky bets. A flight to safety ahead of the U.S. payrolls report could also serve as a drag.
According to<a href="https://benzinga.grsm.io/register174"> Benzinga Pro data</a>, in premarket trading:
<ul>
<li>Nvidia fell 1.89% to $105.18.</li>
<li>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) slumped 2.41% to $120.12.&nbsp;</li>
<li>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) lost 1.01% to $138.03.</li>
<li>Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) plunged 2.99% to $402.20.</li>
<li>Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) moved down 2.39% to $68.22.</li>
<li>QUALCOMM Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) declined 0.99% to $162.08.</li>
<li>Texas Instruments Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>) lost 0.77% to $200.</li>
<li>Taiwan Semiconductor Manufacturing Company Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) slipped 0.77% to $162.44.</li>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) retreated 2.01% to $208.76.</li>
</ul>
Read Next: 
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<li><a href="https://www.benzinga.com/news/earnings/24/09/40746080/us-stocks-set-for-steep-fall-amid-heightened-anxiety-ahead-jobs-data-vix-surges-strategist-flags-2-">US Stocks Set For Steep Fall Amid Heightened Anxiety Ahead Jobs Data, VIX Surges: Strategist Flags 2 Reasons Why He Expects More Volatility Ahead</a></li>
</ul>
Image via Shutterstock

General

Nvidia, Super Micro, Arm Tumble 2% In Premarket, Most Chip Peers Deep In Red: What's Dragging Down Semiconductor Stocks?

The semiconductor sector is poised for strong growth, driven by rising penetration of digital technologies and rising adoption of various consumer electronics across the globe. Thus, to gain exposure to the semiconductor sector, one could consider watching SPDR S&P Semiconductor (XSD), iShares Semiconductor (SOXX), and VanEck Semiconductor (SMH). Read on… Rising demand has spurred fresh industry investments to boost chip production. With support from the CHIPS and Science Act, the United States is projected to more than triple its semiconductor manufacturing capacity and attract a greater share of private investment in the sector.
Given this long-term positive sentiment, watching semiconductor ETFs such as SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>), iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>), and VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>) might be wise choices now.
The rising demand for semiconductors is driven by AI, 5G, electric vehicles, and cloud computing growth. As these technologies expand, the need for chips intensifies, creating opportunities in the semiconductor industry. ETFs offer diversified exposure, reducing risk by investing in a basket of semiconductor companies across the supply chain.
Moreover, the Semiconductor Industry Association (SIA) reported global sales of $149.90 billion during the second quarter of 2024, up <a href="https://www.semiconductors.org/global-semiconductor-sales-increase-18-3-in-q2-2024-compared-to-q2-2023-quarter-to-quarter-sales-up-6-5/">18.3% from last year</a>. In fact, companies in the <a href="https://www.semiconductors.org/the-chips-act-has-already-sparked-200-billion-in-private-investments-for-u-s-semiconductor-production/">semiconductor ecosystem have announced</a> more than 90 new manufacturing projects in the United States since CHIPS was first introduced in Congress, totaling nearly $450 billion in announced investments across 28 states.
With that in mind, let's look at the fundamentals of three <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a>, beginning with the third one.
ETF #3: SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>)
XSD is an exchange-traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. The fund invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment, and semiconductors sectors.
With $1.40 Billion in <a href="https://www.investopedia.com/terms/a/aum.asp">AUM</a>, its top holdings are Semtech Corporation (<a href="https://stocknews.com/stock/SMTC/">SMTC</a>) with a 5.1% weighting, Impinj, Inc. (<a href="https://stocknews.com/stock/PI/">PI</a>) at 4.4%, and Monolithic Power Systems, Inc. (<a href="https://stocknews.com/stock/MPWR/">MPWR</a>) at 3.7% weight.
The ETF's expense ratio is 0.35%, compared to the category average of 0.58%. XSD's fund inflows were $50.34 million over the past month. The fund pays an annual dividend of $0.55, which translates to a 0.24% yield at the current price level.
XSD has gained 3.5% over the past three months to close the last trading session at $231.06. It has a five-year beta of 1.75. The fund's NAV was $230.94 as of September 20, 2024.
XSD's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The ETF's overall A rating equates to a Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The fund has a C grade for Trade and Buy &amp; Hold. XSD is ranked #77 in the <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a> ETF. <a href="https://stocknews.com/stock/XSD/">Click here</a> to access all the XSD ratings.
ETF #2: iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>)
SOXX is an exchange-traded fund launched by BlackRock, Inc. The fund focuses on companies operating in the information technology, semiconductors, and semiconductor equipment sectors. It invests in growth and value stocks of companies across diversified market capitalizations.
With $14.08 billion in AUM, the fund has a total of 15 holdings. SOXX's top holding is Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>) with a 10.4% weighting, followed by NVIDIA Corporation (<a href="https://stocknews.com/stock/NVDA/">NVDA</a>) with an 8.9% weighting, and Advanced Micro Devices, Inc. (<a href="https://stocknews.com/stock/AMD/">AMD</a>) with 7.8%.
SOXX has an expense ratio of 0.35%, lower than the category average of 0.58%. It currently has a NAV of $223.65. Its fund inflows came in at $281.48 billion over the past month.
The fund's annual dividend of $1.46 yields 0.64% on the current share price. Its four-year average yield is 0.86%. Its dividend payouts have increased at a CAGR of 12.5% over the past three years and 12.6% over the past five years.
SOXX has gained 42.5% over the past year and 21.4% over the past nine months to close the last trading session at $223.67.
SOXX's POWR Ratings reflect solid prospects. Its overall rating of C equates to a Neutral in our proprietary rating system.
SOXX has a C grade for Buy &amp; Hold and Trade. Of the 119 ETFs in the same group, it is ranked #75. Get all SOXX ratings <a href="https://stocknews.com/stock/SOXX/">here</a>.
ETF #1: VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>)
SMH is an exchange-traded fund launched and managed by Van Eck Associates Corporation. The fund invests in growth and value stocks of companies across diversified market capitalizations. It seeks to track the performance of the MVIS US Listed Semiconductor 25 Index by using a full replication technique.
With $22.66 billion in AUM, SMH's top holding is NVDA, with a 20.7% weighting, followed by Taiwan Semiconductor Manufacturing Company Limited (<a href="https://stocknews.com/stock/TSM/">TSM</a>), with a 14.2% weighting, and AVGO, with 8.6%. SMH has a total of 15 holdings.
SMH has an expense ratio of 0.35%, lower than the category average of 0.58%. It currently has a NAV of $237.83. Its fund inflows came in at $6.02 billion over the past year.
The ETF pays an annual dividend of $1.04, which yields 0.44% on the current price. It has a four-year average dividend yield of 0.85%. Its dividend payouts have increased at a CAGR of 11.6% over the past three years and 5% over the past five years.
SMH has gained 66.6% over the past year and 40.7% over the past nine months to close the last trading session at $237.90.
SMH's POWR Ratings reflect its promising prospects. The ETF's overall C rating equates to a Neutral in our proprietary rating system.
SMH has a C grade for Buy &amp; Hold and Trade. In the same ETF group, it is ranked #74. <a href="https://stocknews.com/stock/SMH/">Click here</a> to access all of SMH's POWR Ratings.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
SMH shares were trading at $238.59 per share on Monday afternoon, up $0.69 (+0.29%). Year-to-date, SMH has gained 36.44%, versus a 20.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/smh-soxx-xsd-3-semiconductor-etfs-to-watch-as-chip-demand-rises/>3 Semiconductor ETFs to Watch as Chip Demand Rises</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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