Nasdaq 100: Nvidia Jumps 4%, Tesla Gains— But Is the Tech Sector Out of Trouble?

Wall Street Rebounds as Tech Stocks Lead Recovery, but Weekly Losses Persist

U.S. stocks staged a comeback on Friday, snapping a multi-day losing streak as investors bought into oversold technology and financial shares. The rally, however, wasn’t enough to erase the week’s heavy losses, with uncertainty around tariffs and economic data keeping sentiment cautious.

Are Markets Out of Correction Territory?

The S&P 500 rebounded over 1.5%, though it remains in correction territory, down more than 10% from recent highs. The Nasdaq Composite jumped around 2%, with tech heavyweights leading the charge, but remains down nearly 9% year-to-date. The Dow Jones Industrial Average surged more than 600 points, trimming weekly losses but still on track for its worst week in two years.

Despite Friday’s bounce, all three indexes are set to close the week down over 4%, marking the fourth consecutive weekly loss for the S&P 500 and Nasdaq. The Russell 2000, which tracks smaller-cap stocks, remains deep in a selloff, down 18% from recent highs, nearing bear market territory.

Which Sectors and Stocks Drove the Rally?

Technology stocks led gains, with the Philadelphia Semiconductor Index surging 3%. Nvidia (NVDA) jumped 4%, while Broadcom (AVGO) and other chipmakers followed suit. Financial stocks also rebounded, with the banking index up 2.9% as investors rotated back into the sector.

Energy stocks climbed as crude oil prices rebounded, while consumer staples struggled, hurt by trade uncertainty. The sector is on pace for its worst weekly performance since May 2022, as President Trump’s tariff threats raise concerns for multinational firms.

What’s Driving Market Sentiment?

Economic data added to investor caution. The University of Michigan’s consumer sentiment index fell to 57.9, well below expectations of 63.2, as inflation fears weighed on consumers. Treasury yields ticked higher, reinforcing expectations that interest rates will stay elevated for longer.

On the political front, the U.S. Senate neared passage of a stopgap spending bill, easing concerns over a government shutdown. However, Trump’s trade policy continues to inject volatility, with recent tariffs on metals triggering swift retaliation from Canada and the EU.

Which Stocks Made Big Moves?

Several companies posted notable gains on earnings and analyst upgrades:

• Tesla (TSLA) +3.4% – Reports suggest the automaker will launch a cheaper Model Y in China to regain market share.
• Ulta Beauty (ULTA) +12.3% – Beat earnings estimates, though issued cautious guidance.
• DocuSign (DOCU) +18% – Strong revenue outlook driven by AI integration.
• Semtech (SMTC) +18.5% – Surged on upbeat earnings and guidance.
• Crown Castle (CCI) +10.4% – Announced an $8.5 billion asset sale, boosting sentiment.

What’s Next for Markets?

All eyes are now on next week’s Federal Reserve policy meeting, where traders expect rates to hold steady. However, with consumer confidence weakening and inflation expectations rising, investors will look for any signals on future rate cuts.

While Friday’s rally was a relief, the broader market remains fragile. Tariff risks, economic uncertainty, and Fed policy expectations will be key in determining whether stocks can sustain a recovery or face further selling pressure.

More Information in our Economic Calendar.