On Wednesday, the New York Stock Exchange rebounded, led by technology stocks, after three days.
However, the Dow Jones Industrial Average, which consists of 30 large-cap stocks, continued its downward trend for a third day.
Tesla surged by 7%, while Nvidia climbed over 6%. With all M7 big tech stocks rising significantly except for Apple, the tech sector showed an overall positive trend.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as the Wall Street “fear gauge,” plummeted 10 %.
Rebound after three days
The tech-heavy S&P 500 and Nasdaq broke free from two days of decline.
Unlike the previous day, when stocks rebounded but eventually fell due to late selling pressure, the market saw a sustained upward trend on this day.
The S&P 500 closed at 5,599.30, up 27.23 points (0.49%), while the Nasdaq finished at 17,648.45, gaining 212.36 points (1.22%).
In contrast, the Dow reversed course with late selling, closing 82.55 points (0.20%) at 41,350.93.
The “Wall Street Fear Index” VIX ended the day down 2.69 points (9.99%) at 24.23.
M7 Rebound
Tesla and Nvidia continued their significant upward trend for the second day, and all M7 stocks rose except Apple.
Thanks to the Tesla advertisement at the White House the previous day, Tesla’s stock surged by $17.51 (7.60%) to $248.09.
Nvidia jumped by $6.99 (6.43%) to $115.74.
Microsoft (MS) rose 0.8 % to $383.27, while Alphabet climbed 1.9 % to $167.11.
Meta Platforms soared 2.3% to $619.56, and Amazon finished up 1.2% at $198.89.
In contrast, Apple closed down $3.86 (1.74%) at $216.98, marking its third consecutive decline.
Semiconductor Surge
Semiconductor stocks led the market’s rise, with Nvidia surging by 6.4%.
Reports suggested that Taiwan’s TSMC plans to collaborate with American fabless semiconductor companies like Nvidia, Broadcom, and AMD to acquire Intel Corporation’s foundry business, boosting semiconductor stocks.
If they form a consortium to acquire Intel Corporation’s foundry division, it could secure a stable semiconductor supply chain in the U.S., alleviating fears of tariffs imposed by Trump.
AMD rose by $4.03 (4.16%) to $100.79, while Broadcom climbed $4.14 (2.18%) to $194.23.
Taiwan’s TSMC led the consortium, and its American Depositary Receipts (ADR) increased by $6.20 (3.63%) to $177.17.
Intel Corporation, which plans to sell its foundry business, surged by $0.90 (4.55%) to $20.68.
In after-hours trading, Intel Corporation skyrocketed 13% to $23.36.
The stock soared after Intel announced that it had appointed Lip-Bu Tan as its new CEO. Tan previously led Cadence Design Systems, a software company used by major semiconductor design firms.
With the CEO vacancy at Intel Corporation filled, expectations grew that the company could make a comeback based on the new CEO’s expertise.
Steel Rises, Autos Fall
The tariff policies created mixed results across industries.
The 25% tariff on imported steel and aluminum took effect that day, and stock prices for steel and aluminum companies soared.
Nucor closed up $0.96 (0.74%) at $130.86, while United States Steel jumped $0.99 (2.67%) to $38.05.
U.S. Steel rose by $0.99 (2.68%) to $38.05.
Alcoa, the largest aluminum producer in the U.S., finished the day up $1.29 (4.04%) at $33.25.
In contrast, Detroit’s “Big Three” automakers continued to decline.
Concerns about profitability have risen due to Trump’s tariff threats on the North American automotive cluster, which includes Mexico and Canada.
Notably, the stock of Stellantis, a joint venture between Italy, France, and the U.S., fell sharply.
Stellantis dropped $0.16 (1.28%) to $12.32, marking a total decline of 5.6% this year.
General Motors, heavily reliant on the North American cluster, fell by $0.38 (0.79%) to $47.90, while Ford closed down $0.10 (1.15%) at $8.59.
