Nasdaq 100 Gains 3% as Buyers Emerge After AI Rout: Markets Wrap
(Bloomberg) — Wall Street staged a comeback as dip buyers emerged, lifting stocks as chipmakers rebounded while data signaled the economy remains in good shape, but isn’t overheating.
Following a selloff in one of the most-crowded trades, a gauge of semiconductor giants rallied 8%. The Nasdaq 100 added about 3% a day after entering a technical correction. Microsoft Corp. surged 14% on strong cloud growth. Oracle Corp. jumped after expanding its Google Gemini AI partnership. Those gains outweighed a disappointing forecast from Meta Platforms Inc.
Equities also rose after data showed a pickup in consumer spending and solid business investment even as the economy grew at a weaker-than-expected pace. In the aftermath of the Federal Reserve decision, longer-dated Treasuries underperformed. The dollar fell. The yen climbed 2.4%, stoking speculation of intervention.
Attention will soon shift to results from Apple Inc. and Amazon.com Inc., with traders hoping to get more clues on the path for the Magnificent Seven megacaps. The group has lagged behind the broader market this year on worries over whether the vast sums being poured into artificial intelligence will pay off.
“Despite near-term volatility, the outlook for US equities remains constructive, supported by strong corporate earnings, ongoing AI adoption, a resilient economy, and favorable financial conditions,” said Sameer Samana at Wells Fargo Investment Institute.
The recent equity weakness appears more consistent with a reset in a market that had become overheated than a breakdown in the primary trend, according to Keith Lerner at Truist Advisory Services Inc.
“The bull market remains intact,” he said.
Thursday’s rally in chipmakers trimmed their July plunge to 21% — which is still set to be the biggest monthly slide since 2008. Despite the insatiable demand for all things related to AI, the group has been under intense volatility after its massive stock-market run, with lofty expectations leaving little room for disappointment.
“We remain constructive on the AI growth story, but believe investors should manage concentration risk by broadening their exposure to defensive tech stocks,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.
Elsewhere, oil fluctuated on signs shipping across the Strait of Hormuz has picked up despite hostilities in the Middle East. Short-dated UK government bonds climbed after the Bank of England left rates unchanged and pointed to easing domestic inflationary pressures.
Corporate Highlights:
Alphabet Inc.’s Google DeepMind unveiled a new AI model for robots that allows humanoid machines to coordinate movements across their entire bodies. Qualcomm Inc., the largest maker of smartphone processors, gave a weak profit forecast for the current quarter, signaling that component shortages and rising costs are taking a toll on its main market. Arm Holdings Plc showed signs of fast growth in its data-center business, signaling its push into the hot segment is bearing fruit. Intercontinental Exchange Inc., the parent of the New York Stock Exchange, agreed to buy MarketAxess Holdings Inc. for about $6 billion in cash, adding one of the world’s biggest fixed-income exchanges to ICE’s collection of trading platforms. Mastercard Inc. reported a 21% profit surge as the company benefited from its expansion beyond traditional payment-network services. Yum! Brands Inc. said its Taco Bell business is starting to recover from the cyclospora parasite outbreak linked to tainted lettuce that crimped its sales. Starbucks Corp. and Chipotle Mexican Grill Inc. raised their guidance after stronger-than-expected quarters. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.9% as of 11:03 a.m. New York time The Nasdaq 100 rose 2.8% The Dow Jones Industrial Average rose 0.3% The Stoxx Europe 600 rose 0.8% The MSCI World Index rose 1.1% Currencies
The Bloomberg Dollar Spot Index fell 0.8% The euro rose 0.3% to $1.1504 The British pound rose 0.4% to $1.3428 The Japanese yen rose 2.4% to 159.44 per dollar Cryptocurrencies
Bitcoin rose 1.9% to $64,647.02 Ether rose 1.8% to $1,916.86 Bonds
The yield on 10-year Treasuries was little changed at 4.67% Germany’s 10-year yield was little changed at 3.17% Britain’s 10-year yield declined three basis points to 5.00% The yield on 2-year Treasuries declined four basis points to 4.23% The yield on 30-year Treasuries advanced two basis points to 5.22% Commodities
West Texas Intermediate crude fell 0.2% to $84.28 a barrel Spot gold rose 0.8% to $4,098.41 an ounce ©2026 Bloomberg L.P.
