Nasdaq Hits Record Close as AI Chip Rally Powers 4.3% SOX Surge
SOX has more than doubled off its 52-week low of $6,125.005.
Summary
The Nasdaq closed at an all-time high on Monday, powered by a 4.3% surge in the Philadelphia Semiconductor Index (SOX). The tech-heavy index gained 2.3%, its largest daily percentage gain since August 4, while the S&P 500 rose 1.5%. The rally was fueled by a drop in oil prices (WTI -4.5%, Brent -3.4%) and easing Treasury yields, alongside renewed investor enthusiasm for AI-related chip stocks. This follows a volatile period for SOX, which had plunged over 6.5% in early July amid AI spending concerns and geopolitical tensions. The market now prices a 55.4% probability of an October Fed rate hike, up from 8.8% a month ago, but the day's risk-on sentiment suggests investors are looking past near-term tightening.
At the time of this announcement, SOX was trading at $12,433.17 on NASDAQ in the Technology sector. The 52-week trading range was $6,125.01 to $14,655.29. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.