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 drawdown in one of the market’s most-crowded trades, semiconductor giants rallied. The Nasdaq 100 climbed 3% a day after entering a technical correction. Microsoft Corp. jumped 15% as its cloud unit grew at the fastest clip in four years. Those gains overshadowed a slide in Meta Platforms Inc., following a disappointing quarterly revenue forecast.
Equities held gains 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 rose 2%, 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.
Corporate Highlights:
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. 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. Bristol Myers Squibb Co. boosted its sales and profit outlook for 2026 after second-quarter demand for most of the drugmaker’s portfolio beat Wall Street’s expectations, led by newer medicines for heart conditions and cancer. 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. Some of the main moves in markets:
Stocks
The S&P 500 rose 1.3% as of 10 a.m. New York time The Nasdaq 100 rose 3% The Dow Jones Industrial Average rose 0.7% The Stoxx Europe 600 rose 0.9% The MSCI World Index rose 1.4% Currencies
The Bloomberg Dollar Spot Index fell 0.8% The euro rose 0.5% to $1.1521 The British pound rose 0.4% to $1.3424 The Japanese yen rose 2.2% to 159.84 per dollar Cryptocurrencies
Bitcoin rose 2.4% to $64,968.21 Ether rose 2.4% to $1,928.28 Bonds
The yield on 10-year Treasuries declined one basis point to 4.67% Germany’s 10-year yield was little changed at 3.17% Britain’s 10-year yield declined four basis points to 5.00% The yield on 2-year Treasuries declined five basis points to 4.22% The yield on 30-year Treasuries was little changed at 5.21% Commodities
West Texas Intermediate crude fell 0.8% to $83.75 a barrel Spot gold rose 1.1% to $4,111.44 an ounce ©2026 Bloomberg L.P.
