{"id":9805,"date":"2025-05-15T01:02:00","date_gmt":"2025-05-15T05:02:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/05\/15\/stocks-settle-mixed-on-chip-stock-strength-and-higher-bond-yields\/"},"modified":"2025-05-15T01:02:00","modified_gmt":"2025-05-15T05:02:00","slug":"stocks-settle-mixed-on-chip-stock-strength-and-higher-bond-yields","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/05\/15\/stocks-settle-mixed-on-chip-stock-strength-and-higher-bond-yields\/","title":{"rendered":"Stocks Settle Mixed on Chip Stock Strength and Higher Bond Yields"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Wednesday closed up +0.10%, the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed down -0.21%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.57%. \u00a0June E-mini S&#038;P futures (ESM25) are up +0.07%, and June E-mini Nasdaq futures (NQM25) are up +0.57%.\u00a0<\/p>\n<p>Stock indexes on Wednesday settled mixed, with the Nasdaq 100 posting a 2-1\/2 month high.\u00a0 The strength in chip makers Wednesday supported gains in the broader market. \u00a0The Trump administration is expected to sign agreements to give Saudi Arabia and the United Arab Emirates wider access to advanced AI chips, with companies like Nvidia, Advanced Micro Devices, and Amazon.com investing in projects, including data centers and AI infrastructure.\u00a0 On Tuesday, the Commerce Department said it is rescinding the AI diffusion rule launched by President Biden, and the Trump administration plans to overhaul regulations on the export of semiconductors used in artificial intelligence that could shift toward negotiating individual deals with countries.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-X8c\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-X8c')) {             googletag.display('js-dfp-tag-X8c');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>     <span>Join 200K+ Subscribers: <\/span> Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.  <\/p>\n<p>\u00a0<\/p>\n<p>However, stocks fell back from their best levels Wednesday and traded mixed after the 10-year T-note yield rose to a 1-month high on hawkish comments from Fed Vice Chair Jefferson, who said he's lowered his 2025 US growth forecast but still sees expansion and \"If the increase in tariffs announced so far are sustained, they are likely to interrupt progress on disinflation and generate at least a temporary rise in inflation.\"<\/p>\n<p>US MBA mortgage applications rose +1.1% in the week ended May 9, with the purchase mortgage sub-index up +2.3% and the refinancing mortgage sub-index down -0.4%.\u00a0 The average 30-year fixed rate mortgage rose +2 bp to 6.86% from 6.84% in the prior week.<\/p>\n<p>This week, the markets will focus on tariff news and the prospects for additional trade deals. \u00a0On Thursday, Apr retail sales are expected to remain unchanged m\/m, and Apr retail sales ex-autos are expected at +0.3% m\/m.\u00a0 Also, on Thursday, Apr PPI final demand is expected at +0.2% m\/m and +2.5% y\/y, with Apr PPI ex-food and energy expected at +0.3% m\/m and +3.1% y\/y.\u00a0 In addition, Fed Chair Powell will give remarks on Thursday at the Thomasa Laubach Research Conference.\u00a0 Finally, on Thursday, Apr manufacturing production is expected to fall by -0.3% m\/m.\u00a0 On Friday, Apr housing starts are expected to be up +2.9% m\/m to 1.363 million, while Apr building permits are expected to be down -1.2% m\/m to 1.450 million.\u00a0 Also, on Friday, the preliminary May University of Michigan US consumer sentiment index is expected to rise +1.2 points to 53.4.\u00a0<\/p>\n<p>The markets are discounting the chances at 8% for a -25 bp rate cut after the June 17-18 FOMC meeting.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-9hM\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-9hM')) {             googletag.display('js-dfp-tag-9hM');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Q1 earnings reporting season is winding down.\u00a0 So far, over 80% of companies in the S&P 500 have reported quarterly results, and 77% have beaten estimates, the highest since Q2 of 2024. \u00a0Earnings growth in Q1 is running at +13.1%, compared with just +6.6% expected before the start of the season.\u00a0 Full-year 2025 corporate profits for the S&P 500 are seen rising +9.4%, down from the forecast of +12.5% in early January. \u00a0<\/p>\n<p>Overseas stock markets on Wednesday settled mixed. \u00a0The Euro Stoxx 50 closed down -0.24%. \u00a0China's Shanghai Composite rose to a 1-3\/4 month high and closed up +0.86%. \u00a0Japan's Nikkei Stock 225 closed down -0.14%.<\/p>\n<p><strong>Interest Rates<\/strong><\/p>\n<p>June 10-year T-notes (ZNM25) Wednesday closed down -8 ticks. \u00a0The 10-year T-note yield rose +6.7 bp to 4.532%. \u00a0June T-notes on Wednesday dropped to a 1-month low, and the 10-year T-note yield climbed to a 1-month high of 4.538%.\u00a0 T-notes on Wednesday gave up an early advance and turned lower on negative carryover from weakness in European government bonds.\u00a0 Also, rising inflation expectations are bearish for T-notes after the US 10-year breakeven inflation rate rose to a 6-week high Wednesday of 2.398%.\u00a0 Losses in T-notes accelerated on hawkish comments from Fed Vice Chair Jefferson, who said inflation could rise from US tariff policies.\u00a0<\/p>\n<p>European government bond yields Wednesday moved higher. \u00a0The 10-year German bund yield rose to a 1-month high of 2.701% and finished up +1.9 bp at 2.699%.\u00a0 The 10-year UK gilt yield rose to a 1-month high of 4.723% and ended up +4.3 bp to 4.713%.<\/p>\n<p>Swaps are discounting the chances at 86% for a -25 bp rate cut by the ECB at the June 5 policy meeting.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-ZG8\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-ZG8')) {             googletag.display('js-dfp-tag-ZG8');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p><strong>US Stock Movers<\/strong><\/p>\n<p>Chip stock strength was a supportive factor for the overall market.\u00a0ARM Holdings Plc (ARM) closed up more than +5% to lead gainers in the Nasdaq 100, and Advanced Micro Devices (AMD) and Nvidia (NVDA) closed up more than +4%.\u00a0 Also, KLA Corp (KLAC) and Qualcomm (QCOM) closed up more than +1%.\u00a0<\/p>\n<p>Pharmaceutical stocks and drug makers retreated on Wednesday.\u00a0 Moderna (MRNA), AbbVie (ABBV), and Bristol-Myers Squibb (BMY) closed down more than -5%.\u00a0 Also, Merk & Co (MRK), Eli Lilly (LLY), and West Pharmaceutical Services (WST) closed down more than -4%.\u00a0 In addition, Pfizer (PFE), Amgen (AMGN), and Gilead Sciences (GILD) closed down more than -3%.\u00a0<\/p>\n<p>Super Micro Computer (SMCI) closed up more than +16% to lead gainers in the S&P 500, extending Tuesday's +15% rally after Saudi Arabia-based data center company DataVolt signed a multi-year partnership agreement with the company.<\/p>\n<p>Exelixis (EXEL) closed up more than +20% after reporting Q1 total revenue of $555.4 million, well above the consensus of $495.6 million, and raised its full-year revenue forecast to $2.25 billion-$2.35 billion from a previous forecast of $2.15 billion-$2.25 billion, better than the consensus of $2.25 billion.<\/p>\n<p>Dynatrace (DT) closed up more than +5% after reporting Q4 revenue of $445.2 million, better than the consensus of $435.2 million, and forecast 2026 revenue of $1.95 billion-$1.97 billion, stronger than the consensus of $1.93 billion.\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-vzA\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-vzA')) {             googletag.display('js-dfp-tag-vzA');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>International Paper (IP) closed up more than +4% after Truist Securities said a Fastmarkets RISI report that Geogia-Pacific will permanently close its Cedar Springs, GA containerboard mill is positive for International Paper.\u00a0<\/p>\n<p>Tesla (TSLA) closed up more than +4% after Reuters reported that the company plans to start shipping components from China to the US to produce Cybercab and Semi trucks from the end of this month.<\/p>\n<p>Homebuilders declined Wednesday after the 10-year T-note yield rose to a 1-month high, a negative factor for housing demand.\u00a0 PulteGroup (PHM) closed down more than -4%, and Lennar (LEN), DR Horton (DHI), and Toll Brothers (TOL) closed down more than -3%.<\/p>\n<p>Loar Holdings (LOAR) closed down more than -10% after shareholders planned to sell nine million shares via a one-day marketed offering that may price after the close on Wednesday.\u00a0 D.A. Davidson downgraded the stock to underperform from neutral with a price target of $21.<\/p>\n<p>American Eagle Outfitters (AEO) closed down more than -6% after withdrawing its fiscal year 2025 guidance due to macroeconomic uncertainty.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-5f4\"  class=\"btf-bodymidpagetwothirdswidth-5\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-5f4')) {             googletag.display('js-dfp-tag-5f4');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Target (TGT) closed down more than -3% after Oppenheimer cut its price target on the stock to $130 from $150.<\/p>\n<p>Cboe Global Markets (CBOE) closed down more than -2% after Morgan Stanley double-downgraded the stock to underweight from overweight with a price target of $215.\u00a0<\/p>\n<p>Consolidated Edison (ED) closed down more than -1% after KeyBanc Capital Markets downgraded the stock to underweight from sector weight with a price target of $90.<\/p>\n<p><strong>Earnings Reports (5\/15\/2025)<\/strong><\/p>\n<p>Advanced Drainage Systems Inc (WMS), Applied Materials Inc (AMAT), Birkenstock Holding Plc (BIRK), Cava Group Inc (CAVA), Deere & Co (DE), Doximity Inc (DOCS), Globant SA (GLOB), Take-Two Interactive Software (TTWO), Walmart Inc (WMT).<\/p>\n<p><i>     On the date of publication,      Rich Asplund              did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy          here. <\/i><\/p>\n<p>\u00a0<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-0E8\"  class=\"btf-bodymidpagetwothirdswidth-6\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-0E8')) {             googletag.display('js-dfp-tag-0E8');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p> More news from Barchart <\/p>\n<ul>\n<li>S&P Futures Gain With Investors in Risk-On Mood, Fed Speak on Tap<\/li>\n<li>Today\u2019s Trade: Sell Euro Currency Futures as the Dollar Heats Up on China Tariff Relief<\/li>\n<li>Stocks Set to Open Muted After CPI Shows a Slight Increase in Inflation<\/li>\n<li>Stock Index Futures Rally as U.S. and China Agree on Temporary Tariff Cuts, Inflation Data and Powell\u2019s Remarks Awaited<\/li>\n<\/ul>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">Stocks<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0S&#038;P 500 Index ($SPX) (SPY) Wednesday closed up +0.10%, the\u00a0Dow Jones Industrials Index ($DOWI)\u00a0(DIA) closed down -0.21%, and the\u00a0Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.57%. \u00a0June E-mini S&#038;P futures (ESM25) are up +0.07%, and June E-mini Nasdaq futures (NQM25) are up +0.57%.\u00a0 Stock indexes on Wednesday settled mixed, with the Nasdaq 100 posting a 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