High yields keep markets divided as AI chips continue to support Nasdaq and Nikkei
đ Global equities did not move into a broad risk-off phase during the week of September 28âOctober 2, but market divergence became increasingly clear. The S&P 500 fell 0.27% and the Dow lost 1.26% for the week, while the Nasdaq still gained 0.45%, supported by technology and semiconductor stocks.
đ U.S. nonfarm payrolls rose by just 29,000, sharply reducing expectations for a Fed rate hike in October and helping equities recover late in the week. However, the 10-year Treasury yield still finished near 5.28% after reaching 5.34%, showing that pressure from long-term borrowing costs remains elevated.
đ Market breadth was also weaker than the major indices suggested, with only around 35% of stocks in the tracked universe advancing during the week. Technology continued to outperform, while financials and healthcare declined more sharply, reflecting continued concentration in a relatively narrow group of market leaders.
đ» A similar pattern appeared across Asia. The Nikkei gained nearly 3% on strength in chip and semiconductor-equipment stocks, while the broader TOPIX declined. Taiwan remained positive, while the Hang Seng, KOSPI and Nifty weakened under pressure from high U.S. yields and thinner regional liquidity.
đȘđș Europe continued to underperform the U.S., with the STOXX 600 falling more than 1% and the CAC 40 losing over 2%. Rising French bond yields and a wider spread over German debt kept fiscal risk and financing costs as stronger headwinds than the positive signals coming from economic activity data.
âïž Overall, the week was better characterized by valuation divergence than by a broad market sell-off. AI chips and selected growth stocks continued to support major indices, but elevated yields, weak breadth and pressure in Europe suggest that the rally has yet to broaden meaningfully.
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đ Global equities did not move into a broad risk-off phase during the week of September 28âOctober 2, but market divergence became increasingly clear. The S&P 500 fell 0.27% and the Dow lost 1.26% for the week, while the Nasdaq still gained 0.45%, supported by technology and semiconductor stocks.
đ U.S. nonfarm payrolls rose by just 29,000, sharply reducing expectations for a Fed rate hike in October and helping equities recover late in the week. However, the 10-year Treasury yield still finished near 5.28% after reaching 5.34%, showing that pressure from long-term borrowing costs remains elevated.
đ Market breadth was also weaker than the major indices suggested, with only around 35% of stocks in the tracked universe advancing during the week. Technology continued to outperform, while financials and healthcare declined more sharply, reflecting continued concentration in a relatively narrow group of market leaders.
đ» A similar pattern appeared across Asia. The Nikkei gained nearly 3% on strength in chip and semiconductor-equipment stocks, while the broader TOPIX declined. Taiwan remained positive, while the Hang Seng, KOSPI and Nifty weakened under pressure from high U.S. yields and thinner regional liquidity.
đȘđș Europe continued to underperform the U.S., with the STOXX 600 falling more than 1% and the CAC 40 losing over 2%. Rising French bond yields and a wider spread over German debt kept fiscal risk and financing costs as stronger headwinds than the positive signals coming from economic activity data.
âïž Overall, the week was better characterized by valuation divergence than by a broad market sell-off. AI chips and selected growth stocks continued to support major indices, but elevated yields, weak breadth and pressure in Europe suggest that the rally has yet to broaden meaningfully.
#MarketInsight $MU $INTC $AMD
