Most Stocks Rise as Earnings Outweigh Chip Rout: Markets Wrap
(Bloomberg) — Wall Street traders kept driving a rotation out of high-profile chipmakers and into a broader category of companies tuned to improving growth prospects, with most stocks rising amid strong corporate earnings.
While the vast majority of shares in the S&P 500 rose, the gauge wavered as semiconductor giants sold off again. An equal-weighted version of the US benchmark gauge — which strips out market-value biases — reached record highs. A drop in oil prices eased worries about inflationary pressures, driving Treasury yields lower on the eve of the Federal Reserve rate decision.
Strong profit growth and undemanding valuations are among the reasons keeping risk assets resilient to a more challenging inflation backdrop, according to HSBC Holdings Plc strategists led by Max Kettner.
“There is good reason for the strength in risk assets,” they wrote, citing a solid start to second-quarter earnings, a rebound in US economic forecasts, lower equity valuations and other positive catalysts.
That resilience has tempered deepening worries about the sustainability of the artificial-intelligence spending boom, with chipmakers heading toward their worst month since 2002. That was after the group notched its best-ever quarter as concerns grew over whether the hundreds of billions of dollars being poured into AI will justify lofty valuations.
The losses underscore how quickly sentiment has turned on one of the market’s most-crowded trades. It also makes for a tough setup heading into earnings from a slew of megacaps. Microsoft Corp. and Meta Platforms Inc. report earnings Wednesday, followed by Apple Inc. and Amazon.com Inc.’s figures on Thursday.
On the geopolitical front, oil extended its decline after President Donald Trump said that the US and Iran were engaged in talks to end the Middle East conflict, with both sides continuing to hold off on attacks.
Corporate Highlights:
Meta Platforms Inc. and BlackRock Inc. plan to build a 1-gigawatt data center complex in Texas that will cost about $14 billion to develop, adding to a wave of investment in the computing hubs that power artificial intelligence. Chinese startup Moonshot AI is seeking access to more of Nvidia Corp.’s advanced Blackwell chips to train the next version of its model, Kimi K4, The Information reported, citing sources it didn’t name. United Parcel Service Inc. boosted its sales guidance for the year, suggesting the courier is benefiting from strong pricing as it works to shift volume from low-margin e-commerce shipments to more-profitable packages. Boeing Co. generated better-than-expected cash flow in the second quarter on continued strong demand for its aircraft, extending the US manufacturer’s turnaround efforts after years of crises. Coca-Cola Co. raised its full-year outlook, bolstered by demand last quarter while it served as a major sponsor of the FIFA World Cup. Visa Inc. is eliminating about 2,600 jobs as Chief Executive Officer Ryan McInerney seeks to make the firm more efficient as it competes in an increasingly tough payments industry. PayPal Holdings Inc., the embattled payments firm that received a takeover offer earlier this year, reported second-quarter earnings that beat analysts’ estimates as the company’s reorganization strategy made progress. Royal Caribbean Cruises Ltd. trimmed its yield forecast and said it sees a “modest” impact on bookings from geopolitical turmoil. JetBlue Airways Corp. reaffirmed its full year outlook and set a new long-term goal for 2028 as strong demand helped offset high fuel prices related to the war in the Middle East. Centene Corp. raised its annual profit guidance after reporting better-than-expected second-quarter results, the latest US health insurer to project confidence that it will be able to navigate a slew of government policy shifts.
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.1% as of 9:33 a.m. New York time The Nasdaq 100 fell 1.1% The Dow Jones Industrial Average rose 0.6% The Stoxx Europe 600 was little changed The MSCI World Index fell 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1369 The British pound was little changed at $1.3297 The Japanese yen was little changed at 163.86 per dollar Cryptocurrencies
Bitcoin fell 2.6% to $63,200.7 Ether fell 3.5% to $1,876.91 Bonds
The yield on 10-year Treasuries declined two basis points to 4.62% Germany’s 10-year yield was little changed at 3.13% Britain’s 10-year yield declined three basis points to 4.97% Commodities
West Texas Intermediate crude fell 2.2% to $80.82 a barrel Spot gold fell 1.1% to $4,030.49 an ounce ©2026 Bloomberg L.P.
