Chip Stocks Surge 2026: Nasdaq Rebounds as Investors Eye Key US Jobs Data & Fed Rate Cuts
Stocks rose globally on February 9, 2026, driven by a rebound in the chip sector and bargain hunting in beaten-down assets after a volatile week. Investors shifted focus to Nasdaq and to upcoming U.S. economic data, including jobs, inflation, and spending reports, which could influence Federal Reserve policy expectations.
Chip Sector Leads Recovery
U.S. chip stocks spearheaded the rally, recovering from heavy losses tied to AI investment concerns and software disruptions. The Philadelphia Semiconductor Index (SOX) climbed, supported by technical levels around $435-$450, lifting broader tech sentiment after a five-session slide.
Bargain hunters targeted AI infrastructure plays and vulnerable tech names, ending an aggressive selloff. Major indexes like the S&P 500 and Nasdaq futures held flat to slightly positive, building on Friday’s 2%+ bounce, while Europe’s STOXX 600 edged 0.2% toward records.
Japan Hits Record Highs
Japan’s Nikkei surged 3.9% to all-time highs, fueled by Prime Minister Sanae Takaichi’s election landslide for the LDP, clearing paths for fiscal expansion like tax cuts and spending. This political clarity boosted Tokyo shares, though it lifted two-year JGB yields to 1.3%, the highest since 1996.
The yen strengthened notably against the dollar, reaching 156.57, reversing late-January weakness. Analysts eye the scale of stimulus, particularly temporary food tax cuts, but note LDP fiscal conservatism tempers borrowing risks.
Fed Policy Bets Intensify
A June Fed rate cut became an odds-on prospect, with easing expectations weighing on the dollar (down 0.45% on the DXY). U.S. data this week—jobs, CPI, retail sales—must balance benign growth signals to sustain cuts without sparking recession fears.
China’s reported urging of banks to curb U.S. Treasury exposure nudged Treasury yields higher and the dollar lower. Euro rose 0.4% to $1.1865, while GBP faced pressure amid UK political uncertainty around PM Keir Starmer.
Commodities Swing Higher
Silver rebounded 4.5% to $81.44/oz after Friday’s wild 15% drop to 9% gain, while gold climbed 1.1% to $5,015 from a weekly low of $4,403. Bitcoin also recovered, reflecting broader risk-on moves post-volatility.
Oil and metals stabilized amid U.S.-Iran tensions and policy shifts under President Trump, supporting industrial rebounds. Rare earth stocks surged on a proposed $12B U.S. strategic stockpile to counter China reliance.
AI Spending Concerns Linger
Lingering doubts persist over $650B capex from top U.S. tech giants (e.g., for AI rollout), questioning ROI amid Anthropic’s Opus 4.6 disrupting software moats. Software stocks like Reuters fell sharply last week, but today’s chip strength signals selective optimism.
Rotation from tech to staples provided stability, with AI trade reassessment ongoing. Strong U.S. manufacturing data and jobless claims earlier bolstered “Goldilocks” views—not too hot for inflation, not too cold for growth.
Global Outlook and Risks
Asia-Pacific markets advanced: Australia’s shares up 1.3% on RBA hike bets, AUD at $0.6958. Political resolutions in Japan and policy clarity aid sentiment, but U.S. data risks loom—if too weak, it threatens earnings; too strong, delays cuts.
For Indian investors in Patiala tracking finance and tech, this rebound highlights chip opportunities amid AI trends, though volatility warrants caution ahead of U.S. jobs data. Markets price in 4.25% Fed funds rate stability, with easing cycles supporting equities into 2026.
Overall, the session marked relief after AI-induced turmoil, with chips and Japan leading, but pivotal U.S. indicators will dictate if gains endure or reverse.
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