High yields keep markets divided as AI chips continue to support Nasdaq and Nikkei
📊 Global equities did not move into a broad risk-off phase during the week of September 28–October 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.
📉 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.
🔎 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.
💻 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.
🇪🇺 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.
⚖️ 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
📊 Global equities did not move into a broad risk-off phase during the week of September 28–October 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.
📉 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.
🔎 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.
💻 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.
🇪🇺 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.
⚖️ 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
