US stocks rebound in premarket trading as NASDAQ leads gains, driven by Intel's 8.77% surge following a reported deal with Apple. Other chip stocks rise amid improved market sentiment.
Market Overview
US equity markets showed signs of recovery in premarket trading on Thursday, with the NASDAQ Composite index erasing yesterday's steep losses. The Dow Jones Industrial Average and S&P 500 also advanced, though at a slower pace, reflecting a cautious but improving risk appetite among investors.
Intel's Surge and Tech Sector Momentum
Intel Corporation (INTC) led gains in the technology sector, rising 8.77% to $131.70, nearing its all-time high of $132.75. The rally followed reports that President Trump announced a deal between Intel and Apple, boosting optimism around the semiconductor company's role in AI and advanced manufacturing. The US government's $8.87 billion investment in Intel under the CHIPS Act, now valued at approximately $56.76 billion, underscores the strategic importance of domestic chip production.
Broader Market Reaction
Other semiconductor stocks mirrored Intel's performance, with Micron Technology (MU) up 4.99%, Broadcom (AVGO) gaining 2.95%, AMD (AMD) rising 3.73%, and Texas Instruments (TXN) advancing 3.96%. Nvidia (NVDA) added 1.32%, while SpaceX (SPACE) dipped 1.55%, highlighting sector-specific volatility. The S&P 500 gained 67 points, and the Dow edged up 253 points, lagging behind the NASDAQ's 500-point rebound.
Implications for Traders
The premarket recovery suggests markets are pricing in a potential dovish pivot from the Federal Reserve, following yesterday's policy decision that triggered broad declines. For Forex traders, the tech-led rally could support a risk-on bias, potentially weakening the US dollar (DXY) against commodity currencies. However, sustained momentum will depend on upcoming economic data and Fed communications.
Risk Sentiment and Policy Context
Investor confidence in the tech sector reflects optimism around US industrial policy and AI-driven growth. The CHIPS Act's impact on semiconductor stocks highlights how fiscal and regulatory measures influence market dynamics. Traders should monitor US Treasury yields and Fed officials' remarks for cues on monetary policy direction.
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