Stock indexes settle mixed with chip stock strength and higher bond yields

From Nasdaq: 2025-05-14 18:10:00

Stock indexes closed mixed on Wednesday, with the Nasdaq 100 hitting a 2-1/2 month high. Chip makers like Nvidia and AMD gained as the Trump administration plans to widen AI chip access to Saudi Arabia and the UAE. T-note yields rose, affecting housing stocks like PulteGroup and Lennar. Earnings season sees S&P 500 companies beating estimates.

US mortgage applications rose +1.1% with a rise in purchase mortgages but a decline in refinancing. Market focus remains on tariff news and upcoming economic reports. Fed Chair Powell will speak on Thursday. Markets predict an 8% chance of a rate cut post-FOMC meeting. International markets were mixed, with Euro Stoxx 50 down, China’s Shanghai Composite up.

Q1 earnings show over 77% of S&P 500 companies beating estimates, with +13.1% earnings growth. Full-year 2025 profit forecast down from +12.5% to +9.4%. Overseas markets in Europe and Asia settle mixed. T-note yields rise, impacting rates and bond markets. ECB likely to cut rates by 25 bps according to swaps.

Stock movers include ARM Holdings, AMD, and Nvidia in chip sector gains. Pharmaceutical stocks like Moderna and AbbVie fell. Super Micro Computer, Exelixis, and Dynatrace saw gains post-earnings. International Paper rose on positive news. Tesla plans to ship components from China for production. Homebuilders and companies like Target and American Eagle Outfitters faced declines. Cboe Global Markets, Consolidated Edison also saw drops. Earnings reports include Walmart, Deere & Co., and more.



Read more at Nasdaq: Stocks Settle Mixed on Chip Stock Strength and Higher Bond Yields