Shares of technology companies rose as strong jobs data and weaker wage inflation weighed on Treasury yields.
South Korean technology giant Samsung Electronics warned that its fourth-quarter profit will fall, citing lower demand for memory chips and smartphones.
However, investors were already looking ahead to the next business cycle. The iShares Semiconductor exchange-traded fund, which tracks the PHLX SOX Semiconductor index, rose nearly 5% as fears about the outlook for global economic growth eased.
“Semiconductors are a bellwether for the growth of the global economy … for an economy that may be riding out a deep recession and maybe just stalling,” said Quincy Krosby, chief global strategist at brokerage LPL Financial.
Shares of mega-cap companies that have fallen out of favor in recent months, including Apple and Tesla, rose sharply.
Write to Rob Curran at rob.curran@dowjones.com
