Chipmakers Drive Market Momentum Amid Earnings Season Rush

The S&P 500 and Nasdaq opened strong thanks to chipmakers amid a volatile week marking the start of Q4 earnings. Memory chipmakers saw strong gains. US stocks faced modest losses, with banks impacted by interest rate cap proposals. Key financial data and Fed activities added uncertainty to the market.

The S&P 500 and Nasdaq appeared poised for a promising start on Friday, as chipmakers spearheaded a rally in a week fraught with volatility. Significant gains from memory chip producers like Micron and Western Digital infused optimism at the onset of the fourth-quarter earnings season.

Their success highlighted the sector's strong demand amid AI advancements, even as investors shifted focus to underperforming sectors such as small-cap and industrial stocks. Despite fresh record closes for the S&P 500 and Dow earlier in the week, U.S. stocks were on track for slight weekly losses. This was partly due to concerns over the potential implications of imposing a 10% credit card interest rate cap.

Meanwhile, the Federal Reserve's future direction added to market uncertainties, with speculation of a rate pause. Market participants' anticipation was further heightened by upcoming earnings from key players like Netflix and Intel. Additionally, a proposed federal agreement to regulate electricity costs impacted independent power producers, reflecting the complexity of current market dynamics.

(With inputs from agencies.)