Wall Street Awaits Wednesday with Chipmaker Stocks in the Spotlight

Quick overview

U.S. Treasury Secretary Scott Bessent said that President Donald Trump is expected to speak with his Chinese counterpart later this week.

His comments were met with caution by investors, especially after Trump accused China of failing to comply with an agreement to reduce tariffs on critical minerals.

Semiconductors in Focus

Shares of Nvidia rose 2.80% after a brokerage firm added the stock to its list of opportunities, citing increased production of its new Blackwell chips as a key driver. The broader semiconductor sector also gained, with Broadcom climbing 3.27% to a record high.

Labor Data in the Spotlight

Markets also reacted to the U.S. JOLTS job openings report, which showed an increase in job listings for April. However, a simultaneous rise in layoffs tempered enthusiasm, preventing stronger momentum. Still, equity indices responded positively to the data, as traders now look ahead to Friday’s official May jobs report for confirmation of labor market resilience.

If May’s non-farm payrolls figure approaches the 7.7 million mark, it would indicate relative stability in the labor market—typically a bullish signal for equities. Conversely, a weaker figure could raise concerns about inflation expectations and dampen investor sentiment.

Capital Flows Turn Positive Amid Stock Buying

Capital flows into U.S. equities turned positive last week, with Bank of America clients buying $2.3 billion worth of individual stocks after net outflows the previous week.

According to the bank, the buying was driven primarily by single-name stocks, while exchange-traded funds (ETFs) continued to see net outflows. Sector flows showed a rotation into cyclical names, with the financials, consumer discretionary, and industrial sectors leading the way. In contrast, tech stocks posted the largest outflows for the third consecutive week, with institutional investors, hedge funds, and retail clients all trimming exposure.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles