Nasdaq Climbs 0.88% as Chip Stocks Rebound, Dow Flat Ahead of Nvidia Earnings and Inflation Data

Authored By HDFC SKY | Last Modified: Aug 25, 2026 08:16 PM IST

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Mumbai, Aug 25: US stock markets opened firmly in positive territory on Tuesday, with the technology‑heavy Nasdaq Composite leading the advance as semiconductor stocks staged a broad recovery from Monday’s sharp sell‑off. The rebound was fuelled by easing Treasury yields, a sharp pullback in crude oil prices, and pre‑earnings positioning ahead of Nvidia’s highly anticipated quarterly results due Wednesday after the closing bell.

At the opening bell, the Nasdaq Composite climbed 228.77 points, or 0.88%, to 26,208.96, while the S&P 500 added 28.14 points, or 0.37%, reaching 7,681.00. The blue‑chip Dow Jones Industrial Average edged up a modest 11.34 points, or 0.02%, to 53,428.50, reflecting a defensive rotation that favoured financials and consumer staples over technology and energy stocks. The positive open followed a mixed session on Monday, when the S&P 500 and Nasdaq closed lower amid a widespread sell‑off in artificial intelligence and chip names, while the Dow managed to eke out a gain.

Dow Jones Industrial Average Rises 11.34 Points to 53,428.50, Led by Financials

The Dow Jones Industrial Average opened at 53,594.92 and traded within an intraday range of 53,420.58 to 53,675.32, with volume of 53,202,715 shares. The index’s near‑flat performance masked a mixed picture among its 30 components. Nvidia rose 2.77%, while Cisco Systems gained 1.99% and IBM added 0.42%.

On the downside, Chevron declined 1.22%, Walmart fell 1.12%, and Procter & Gamble dropped 1.03%, reflecting a rotation away from defensive consumer names as investors shifted towards growth‑oriented technology stocks. Financial stocks provided a modest lift, with Goldman Sachs advancing 0.81% and JPMorgan slipping 0.86%.

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The Dow’s muted advance was also constrained by weakness in energy and consumer staples, which offset the gains in technology and industrials. The index’s opening level of 53,594.92 was above Monday’s close of 53,417.16, indicating continued buying interest in value names, though the intraday high of 53,675.32 remained below last week’s peak.

S&P 500 Adds 28.14 Points to 7,681.00, Technology Sector Leads Recovery

The S&P 500 opened at 7,676.66 and traded between 7,676.66 and 7,686.11, with volume of 235,454,742 shares. The benchmark index’s 0.37% advance was broad‑based, with eight of the eleven primary sectors trading in positive territory. Information Technology was the best‑performing sector, rebounding from Monday’s 1.59% decline, as semiconductor and AI‑related stocks powered higher. Communication Services also outperformed, supported by gains in Meta Platforms and Netflix.

The Energy sector was the worst performer, extending Monday’s losses as crude oil prices slid further. Consumer Staples lagged as defensive positioning unwound, with Procter & Gamble and Walmart among the notable decliners. The S&P 500’s opening level of 7,676.66 was slightly above the previous close of 7,652.86, and the intraday high of 7,686.11 suggests that buyers were active at the open, though the index remains below its 52‑week high of 7,816.70.

The average volume of 5.4 billion shares for the S&P 500 was not yet reached in early trading, but the opening volume of 235 million indicates healthy participation.

Nasdaq Composite Climbs 228.77 Points to 26,208.96, Chip Stocks Lead Charge

The Nasdaq Composite opened at 26,148.71 and traded within a range of 26,134.10 to 26,225.83, with volume of 1,404,604,000 shares. The index’s 0.88% rally was driven by a widespread recovery in semiconductor and AI‑related names, which had been the primary drag on the market in the previous session. 

Advanced Micro Devices share surged 4.34%, Intel jumped 3.15%, and Micron Technology advanced 2.16%. Marvell Technology led the pack with a gain of 7.00%, while ARM Holdings rose 3.28% and Nvidia share added 2.47%, snapping a seven‑session losing streak — its longest since 2022. The iShares Semiconductor ETF (SOXX) gained nearly 2% at the open, recovering from Monday’s 2.5% decline.

The Nasdaq’s opening level of 26,148.71 was above the previous close of 25,980.19, and the intraday high of 26,225.83 indicates strong buying momentum in tech names. However, the index still trades below its 52‑week high of 27,190.21, and the average volume of 9.4 billion shares suggests that early volume was light.

Russell 2000 and S&P 100 Track Nasdaq Higher in Early Trade

The Russell 2000 index, which tracks small‑capitalisation US stocks, opened higher by approximately 0.47% , recovering from Monday’s 0.76% decline. The small‑cap benchmark’s advance reflected improving risk appetite, though gains were more muted compared to large‑cap technology indices.

The index opened near 3,005 and traded within a narrow range, with volume consistent with recent averages. The Russell 2000’s performance was supported by strength in industrials and consumer discretionary names, though energy‑related small caps weighed on the index.

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The S&P 100, comprising the 100 largest US companies, rose in line with the broader S&P 500, supported by strength in mega‑cap technology names such as Apple, Microsoft, and Alphabet. The S&P 100 opened higher by approximately 0.4% , with all but a handful of components trading in positive territory. The index’s advance was led by semiconductor names, while consumer staples and energy components lagged.

Dow Jones Composite, Transportation and Utility Averages Show Mixed Picture

The Dow Jones Composite Average, which combines the industrial, transportation, and utility averages, presented a mixed picture in early trading. The Dow Jones Transportation Average gained approximately 0.5% , reflecting strength in freight and logistics names as oil prices declined.

Key transport stocks such as United Airlines rose nearly 3% after the carrier announced expanded flight routes for 2027, while CSX and Norfolk Southern traded higher. The Dow Jones Utility Average edged lower by approximately 0.3% , as defensive sectors fell out of favour amid the rotation into growth stocks.

Utility names such as NextEra Energy and Duke Energy declined modestly, reflecting the inverse relationship between utility stocks and falling Treasury yields, which reduce the yield advantage of dividend‑paying utilities. The composite average’s overall performance was muted, with the industrial component providing the bulk of the gains.

Philadelphia Semiconductor Index (SOX) Rebounds Nearly 2% After Monday’s Plunge

The Philadelphia Semiconductor Index (SOX) , a key barometer of chip‑maker performance, rose approximately 1.9% in early trading, recouping a portion of Monday’s 2.7% rout. The rebound was broad‑based, with all major components trading higher. Marvell Technology led the SOX with a gain of over 7%, while AMD advanced 4.34% and Intel rose 3.15%.

The recovery followed a brutal session on Monday when memory‑chip makers Seagate Technology fell over 6% and SanDisk dropped more than 6% amid concerns over Nvidia’s potential price hikes on AI server configurations. The SOX opened near 5,420 and traded within a range of 5,400 to 5,450, with volume roughly in line with recent averages.

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The index’s recovery suggests that investors view Monday’s sell‑off as an overreaction, and they are positioning for positive guidance from Nvidia later this week. The SOX remains below its 52‑week high, but the strong open indicates renewed confidence in the semiconductor sector.

NYSE Composite and Mid‑Cap/Small‑Cap Indices Join the Rally

The NYSE Composite Index opened higher, reflecting broad‑based buying across the New York Stock Exchange. The index gained approximately 0.3%, supported by gains in financials and consumer cyclical stocks, though energy names weighed on the composite. The NYSE Composite opened near 20,200 and traded within a narrow range, with volume of approximately 150 million shares in early trade.

The index’s advance was led by Goldman Sachs, JPMorgan, and Boeing, while Chevron and Exxon Mobil declined. The S&P MidCap 400 and S&P SmallCap 600 both opened in positive territory, each rising approximately 0.4%. The mid‑cap index benefited from strength in industrials and materials, with names like Carlisle Companies and Owens Corning trading higher. Small‑caps were lifted by a rotation into cyclical names as oil prices declined, though the energy sector’s weakness capped gains. The S&P MidCap 400 opened near 3,200, while the SmallCap 600 opened near 1,450, both recovering from Monday’s declines.

VIX Edges Higher as Investors Await Key Catalysts

The CBOE Volatility Index (VIX) rose approximately 4.76% in Monday’s session, closing at 15.85, reflecting heightened uncertainty ahead of this week’s key economic data and the Federal Reserve’s Jackson Hole symposium. Early Tuesday, the VIX held steady around the 16 level, indicating that market participants remain cautious despite the opening rally.

The CBOE Nasdaq Volatility Index (VXN) also remained elevated, as tech stocks have been the primary source of market swings; the VXN traded near 22, up from Monday’s close. The CBOE S&P 500 3‑Month Volatility Index (VIX3M) showed a modest uptick to approximately 18, suggesting that investors are pricing in potential volatility over the next quarter, particularly around Federal Reserve policy signals and the trajectory of interest rates.

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The elevated volatility readings indicate that while the opening rally is strong, underlying anxiety about inflation data, central bank rhetoric, and corporate earnings remains present.

Technology and Communication Services Lead, Energy Lags

All eleven primary S&P 500 sectors traded at the open, with clear winners and losers. Information Technology rose over 1.2%, rebounding from Monday’s decline as semiconductor and AI stocks recovered. The sector was buoyed by strong gains in AMD, Intel, and Nvidia, as well as software names like Adobe and Salesforce which traded higher. Communication Services advanced approximately 1.0%, supported by Meta Platforms (+1.56%) and Netflix (+1.71%), as investors rotated back into growth names. 

Consumer Discretionary gained 0.5%, led by Tesla (+1.07%) and Amazon (+0.02%), as lower oil prices boosted consumer sentiment and discretionary spending outlook. Financials added 0.3%, with Goldman Sachs rising 0.81% offset by declines in JPMorgan and Wells Fargo, as the sector continued to benefit from the defensive rotation that has favoured banks and insurers over the past week. 

Health Care was roughly flat, with Merck gaining 1.40% offset by declines in UnitedHealth and Johnson & Johnson; the sector’s muted performance reflected mixed earnings expectations. 

Industrials edged higher, supported by Caterpillar (+0.66%) and Boeing (+0.63%), as infrastructure spending optimism outweighed trade concerns. Energy was the worst performer, falling nearly 1.5%, as crude oil prices slid; Chevron dropped 1.22% and Exxon Mobil declined 1.69%, dragging the sector lower. Consumer Staples fell about 0.8%, with Procter & Gamble down 1.03% and Walmart off 1.12%, as investors rotated out of defensive names. 

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Utilities and Real Estate both traded lower, with declines of approximately 0.5% each, as falling Treasury yields reduced the appeal of high‑dividend sectors. Materials gained a modest 0.2%, supported by strength in Linde and Freeport‑McMoRan, though weakness in Nucor capped gains.

Marvell Tech Surges 7%, Dick’s Sporting Goods Plunges 19%

Among the top performers in early trading, Marvell Technology jumped 7.00% after analysts upgraded the stock, citing strong AI demand and a favourable product cycle. Advanced Micro Devices gained 4.34%, ARM Holdings rose 3.28%, and Intel advanced 3.15%, all benefiting from the semiconductor rebound. Sandisk and Western Digital each gained over 2%, recovering from Monday’s steep losses.

On the downside, Dick’s Sporting Goods plunged approximately 19% after the retailer reported second‑quarter revenue of $5.59 billion, missing the $5.65 billion consensus estimate, and slashed its full‑year outlook to a range of $21.9‑22.2 billion from a prior $22.1‑22.4 billion range, citing a challenging athletic footwear market. 

Five Below fell over 1% after Loop Capital downgraded the stock to hold, citing valuation concerns. Chevron and Exxon Mobil declined over 1% each, tracking oil prices lower. The Magnificent Seven stocks traded mostly higher: Meta (+1.56%), Netflix (+1.71%), Tesla (+1.07%), Alphabet (+0.41% for Class A), Amazon (+0.02%), Microsoft (+0.53%), and Apple (+0.14%), all recovering from Monday’s losses. The group’s performance was a key driver of the Nasdaq’s outperformance.

Economic Data, Treasury Yields and Commodities Shape Market Outlook

Investors are closely watching Tuesday’s US economic data for clues on growth, inflation and the Federal Reserve’s policy outlook. The June S&P CoreLogic Case-Shiller home price index, July new home sales and August Conference Board consumer confidence index are due, with economists expecting modestly slower home sales but relatively stable consumer confidence. Attention will then turn to the July PCE inflation data on Wednesday, with headline PCE expected to rise 3.7% year-on-year and core PCE 4.0%, both well above the Fed’s 2% target. Markets are also awaiting Fed Chair Kevin Warsh’s comments at Jackson Hole for clues on future interest-rate policy.

Meanwhile, US Treasury yields extended their decline for a second session. The 10-year yield fell more than 3 basis points to 4.658%, while the 30-year yield declined to 5.196% and the 2-year yield to 4.208%. Reports that the Treasury could use its roughly $1 trillion General Account for bond repurchases supported demand and eased concerns over long-term borrowing costs. Lower yields also provided support to growth and technology stocks.

In commodities, WTI and Brent crude each fell about 3.7%, to $81.85 and $88.85 per barrel, respectively, despite fresh US sanctions on Iran. Gold slipped 0.2% to $4,685, while the dollar index eased to 98.93. Bitcoin briefly crossed $81,200, its highest level since May, before trading near $78,800, supported by dollar weakness and demand for alternative assets.

The US stock market opened higher on Tuesday, driven by a rebound in semiconductor stocks and easing Treasury yields, as investors positioned for Nvidia’s earnings and the Federal Reserve’s Jackson Hole symposium. Key catalysts this week include the July PCE inflation data on Wednesday, Nvidia’s quarterly results after the closing bell on Wednesday, and Fed Chair Kevin Warsh’s speech on Friday. Oil prices continued their decline despite new US sanctions on Iran, while Bitcoin briefly surpassed $80,000. The market’s direction will likely hinge on earnings guidance and central bank signals.

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