AI chips reversed and led the Nasdaq index, and SanDisk (SNDK.US) surged 7% to set off a rebound in technology

According to Woofun AI, the Nasdaq 100 Index established a leading upward trend, driven by a strong reversal in the AI chip sector, and the explosion of core targets such as SNDK.US (SNDK.US) became a key anchor point for the restoration of market sentiment on the same day.

At noon trading on Monday, the US stock market showed a marked pattern of differentiation. Fluctuations in macro data were intertwined with a game of policy expectations. The Nasdaq 100 rose sharply by 1.7%, the S&P 500 followed a 0.7% increase, while the Dow Jones Industrial Average remained stable.

This rebound is a direct correction to the sharp market adjustments in the previous week. At that time, the NASDAQ index fell by more than 4%, and chip stocks fell by nearly 10%. At the policy level, Federal Reserve Chairman Walsh remains cautious about next week's Federal Open Market Committee (FOMC) decisions and declined to make predictions. He stressed that recent high inflation data has not changed his judgment on the economic situation, even though the market generally expects interest rates to remain unchanged in October. The bond market reacted, and the yield on 10-year US Treasury bonds rose by about 6 basis points to 5.14%, in stark contrast to the nearly 15 basis point drop in that value last week. As of midday trading on Monday, the S&P 500 had risen 51 points to 7,711 points, and the Dow Jones index had a slight drop of 6 points to 51,996 points. The defensive sector, which is sensitive to interest rates, performed the weakest. Although the Nasdaq 100 rose 511 points to 29,699 points, it was still around 2.3% below the September closing price. The Russell 2000 Index rose 0.6% to 2,736 points.

Notably, Amazon (AMZN.US) shares rose 4.9% to $262.32 among the “Big Seven Star Stocks”, showing the resilience of large tech stocks.

According to data compiled by Woofun AI, the deep dismantling of industry ETFs and individual stocks revealed structural changes in capital flows. Among the various sectors of the S&P 500 index, the Technology Select Industry SPDR Fund (XLK.US) led the way with a 2.0% increase, followed by the Non-Essential Consumer Goods Select Industry SPDR Fund (XLY.US), which rose 1.6%. Conversely, due to rising US bond yields, the utility selection sector SPDR fund (XLU.US) fell 1.6%, the real estate selection sector SPDR fund (XLRE.US) fell 1.2%, and the healthcare (XLV.US), energy (XLE.US), and finance (XLF.US) sectors all declined by about 0.8%.

At the ETF level, VanEck Semiconductor ETF (SMH.US) surged 3.0%, and iShares Extended Technology Software ETF (IGV.US) rose 1.9%. The VanEck Gold Mining ETF (GDX.US) fell 1.3%, and the SPDR S&P Metals and Mining ETF (XME.US) rose slightly by 0.7% as the price of gold futures fell by about 0.5% to about $4,160 per ounce.

In terms of individual stocks, AI chips led the way: Intel Corporation (INTC.US) rose 5.0% as J.P. Morgan Chase (JPM.US) raised its rating to “neutral”, and Fanlin Group (LRCX.US) rose 5.4%. The memory chip sector rebounded after a sharp decline last week: Micron Technology (MU.US) rose about 4%, SanDisk (SNDK.US) soared nearly 7%, and SK Hynix rose about 6%. In the field of optical chips, Marvell (MRVL.US) surged 7.3%.

Changes in special sectors and financial reports have further enriched the market picture. In the Russell 1000 Index, Cleveland Cliffs Company (CLF.US) shares surged 16.0% to $14.06, becoming the biggest winner of the day. Its third-quarter adjusted earnings per share were $0.28, better than expectations of $0.21; the adjusted EBITDA value was $612 million. Management expects this figure to exceed $700 million in the fourth quarter and over $4 billion next year, due to the favorable steel price and production environment brought about by tariffs. Data center concept stocks rebounded after selling off last week due to financing issues: Applied Digital (APLD.US) rose 10.2% to $19.89, and TeraWulf (WULF.US) and IREN (IREN.US) both rose about 6%. Semiconductor equipment stocks were also strong, with FormFactor (FORM.US) up 8.4% to $113.78 and Teradyne (TER.US) up 6.6%.

This rebound, driven by fundamentals exceeding expectations and sector rotation, marks the market's refocus on technology and industry leaders with substantial performance support after experiencing short-term liquidity shocks.