[New York Stock Exchange] Long-term Yields Fall, Semiconductor Stocks Rise... All Three Major Indexes Up

U.S. 10-Year Treasury Yield Falls to 4.65% Range
Semiconductor Stocks Rally Ahead of Nvidia Earnings

On August 25 (local time), all three major U.S. stock indexes opened higher on the New York Stock Exchange. U.S. Treasury yields have declined for a second consecutive day, with semiconductor stocks leading the rally ahead of Nvidia's earnings announcement, providing momentum to the market.

As of 9:53 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 4.95 points (0.01%) from the previous session, trading at 53,422.12. The large-cap S&P 500 rose by 27.18 points (0.36%) to 7,680.04, while the tech-heavy Nasdaq climbed by 212.76 points (0.82%) to 26,195.12.

On this day, the decline in U.S. Treasury yields has supported investor sentiment. The yield on the U.S. 10-year Treasury, a global benchmark for bond yields, fell to as low as 4.658% during the session.

The 10-year yield also declined the previous day. Following reports that the U.S. Treasury Department may use funds from its Treasury General Account (TGA), which nears 1 trillion dollars, as a source for Treasury bond buybacks (repurchases), downward pressure has continued on long-term Treasury yields.

Semiconductor stocks are also broadly strong. Investors are increasing their bets on chip stocks ahead of Nvidia's scheduled earnings release after the close on August 26.

By stock, AMD is up 4.25%, Micron Technology 2.48%, Intel 3.04%, Nvidia 2.81%, Meta 1.48%, Alphabet 0.15%, and SK hynix ADR Boost 2.54%. The iShares Semiconductor ETF (SOXX), which tracks major semiconductor stocks, is also showing a gain of 1.81%.

The market's focus is on Nvidia's earnings results and guidance. Amid ongoing debate about the high valuations of AI-related stocks, Nvidia's report is being regarded as a barometer for whether the fever for artificial intelligence (AI) investments will continue, and could potentially set the direction for technology stocks as a whole.

Inflation data is also a key variable that will influence index movements this week. On August 26, the U.S. Department of Commerce will release the Personal Consumption Expenditures (PCE) price index for July. The PCE price index is an important metric referenced by the Federal Reserve in making monetary policy decisions.

Later this week, remarks by Federal Reserve Chair Kevin Warsh during the Jackson Hole Symposium are also scheduled. Chairman Warsh is set to deliver an address on August 28 at the Fed’s annual economic policy symposium held in Jackson Hole, Wyoming.

With the U.S. Treasury Department recently deciding to expand long-term Treasury bond buybacks in an effort to lower long-term yields, the market is closely watching what message Chairman Warsh will deliver regarding inflation, monetary policy, and movements in long-term yields.

This content was produced with the assistance of AI translation services.