S&P 500 and Nasdaq Kick Off Higher as Chip Stocks Keep Rally Rolling

With input from Reuters, the Wall Street Journal, Investor’s Business Daily, and Market Watch.

Wall Street started the week on a positive note Friday, with the S&P 500 and Nasdaq opening higher as chip stocks continued their rally and helped lift broader markets after a choppy week.

The tech-heavy Nasdaq led the gains early, extending the momentum that’s been building around semiconductor names, while the S&P 500 opened solidly above breakeven. Investors have clearly been putting money back into technology and chipmakers after strong earnings news from big players earlier in the week. chipmakers have been a bright spot amid mixed economic data and economic chatter about interest rates.

Nvidia, a bellwether for the AI chip trade, has been climbing back toward recent highs, and other semiconductor stocks – including Advanced Micro Devices (AMD) and several chip equipment makers – have helped push the sector’s gains even further.

Chip stocks are driving this market move because they’re seen as a proxy for AI demand and global tech growth. With enthusiasm around artificial intelligence still strong, investors are willing to pour money into the segment, even as some other parts of the market lag.

After a week of seesawing prices and volatility – especially around geopolitical concerns and mixed economic signals – the renewed appetite for tech stocks is setting a more upbeat tone heading into the weekend.

While semiconductors are the star today, other parts of the market aren’t being left out entirely. Stocks across the broader S&P 500 showed modest gains at the open, indicating that this isn’t just a narrow tech rally but a market trying to stabilize after recent turbulence.

Analysts noted that the shiny performance of chips and big tech may be helping calm some of the nerves that showed up earlier in the week – when trading was choppy and investors digested a mix of corporate earnings and economic data.

With the Nasdaq and S&P 500 mapping out higher starts, investors will be watching whether the chip-led strength can carry into next week. Semiconductor performance has been closely tied to AI optimism and strong earnings reports, and that story isn’t showing signs of fading just yet.

In a market that’s seen its share of ups and downs lately, today’s open reflects a clear bet: tech – and especially chips – still matter most.