Wall Street closes in positive territory boosted by semiconductors and banks
The US stock market closed Tuesday with mixed but generally positive results, as the S&P 500 gained 0.40% to reach 6,671.06 points, while the Dow Jones remained steady at 46,253.31 points. This session was highlighted by a remarkable surge in tech stocks, notably in the semiconductor sector, alongside strong performances from major US banks reporting their quarterly results. Investors also had to navigate a tense geopolitical environment, as the Trump administration intensified its rhetoric against China regarding rare earth control, threatening to impose triple-digit tariffs. Amid this climate of uncertainty, gold surpassed the symbolic $4,200 per ounce mark for the first time, setting a new all-time record.
Artificial Intelligence Drives Semiconductors to New Heights
The semiconductor sector shone brightly during this session, fueled by a wave of enthusiasm surrounding artificial intelligence. Advanced Micro Devices' stock soared 9.40% to $238.60, benefiting from the announcement of a massive 6-gigawatt deal with OpenAI to power the next generation of AI infrastructure. This strategic collaboration is part of a broader trend where OpenAI is diversifying its partners, having also secured similar agreements with Nvidia and AMD. The AMD Instinct chip will power several generations of OpenAI systems, confirming the group's position as a credible alternative to Nvidia in the AI race.
Semiconductor equipment manufacturers also rode this wave of optimism. KLA Corporation's stock rose 5.98% to $1,087.01, while Lam Research jumped 4.68% to $144.78 after announcing a 13% increase in its quarterly dividend. Applied Materials, a global leader in chip manufacturing equipment, gained 4.30% to $227.58, benefiting from its strategic partnership with GlobalFoundries to establish a photonic waveguide manufacturing plant in Singapore. This photonic technology, which uses light for data transmission, is crucial for enabling faster and more energy-efficient data movement in AI workloads.
Despite its recent difficulties, Intel rebounded by 4.27% to $37.15, while Monolithic Power Systems' stock gained 4.10% to $1,007.93. Western Digital, a storage specialist, added to this positive picture with a 6.46% increase to $120.44, capitalizing on the growing demand for storage capacity for AI applications. This frenzy around semiconductors highlights investors' belief that AI represents a structural growth cycle lasting several years for the entire sector.
Major US Banks Attract With Strong Quarterly Results
The financial sector also stood out with quarterly results that far exceeded expectations. Morgan Stanley gained 4.71% to reach $162.65 after reporting net revenues of $18.2 billion for the third quarter of 2025, marking an 18% increase year-over-year, and an earnings per share of $2.80, surpassing estimates. CEO Ted Pick praised the outstanding performance, driven by strong activity across all business segments globally. The investment banking division particularly excelled, with fees up 45% to $2.1 billion, boosted by advising on Keurig Dr Pepper's acquisition of the Dutch company JDE Peet's. Trading revenues surged 24.5% to $6.2 billion, encompassing equities, fixed income, currencies, and commodities.
Bank of America shares followed suit, climbing 4.37% to $52.28, with net interest income of $28.1 billion and a net profit of $8.5 billion for the quarter. These results reflect a favorable environment marked by a rebound in mergers and acquisitions and sustained trading activity, as US stock markets reached all-time highs during the quarter. Morgan Stanley's wealth management reported a pre-tax margin of 30% while attracting $81 billion in new net assets. Total client assets in both wealth management and investment management divisions reached $8.9 trillion, demonstrating ongoing investor confidence despite the prevailing economic uncertainty.
Profit-taking in insurance and US-China tensions over rare earths
Several sectors faced significant pressures, moving against this positive trend. Axon Enterprise, the manufacturer of stun guns and body cameras, saw its stock fall by 8.47% to $644.99 amid massive institutional sell-offs. Interchange Capital reduced its stake by 71.5%, selling 896 shares worth $296,000, while Zacks downgraded the stock from « Strong-Buy » to « Hold. » This correction comes despite promising strategic initiatives like the acquisition of an AI-powered 911 emergency platform and a counter-drone partnership with TYTAN.
The insurance sector also suffered, with Progressive Corporation declining by 5.78% to $226.5 as investors took profits following recent strong performances. TransDigm Group, a specialist in aerospace components, fell by 5.70% to $1,237.71 after Morgan Stanley lowered its price target from $1,750 to $1,600, citing higher interest expenses due to recent debt transactions and the payment of a special dividend of $90 per share.
On the macroeconomic front, trade tensions between Washington and Beijing have intensified. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on Wednesday condemned China's « global takeover » of rare earths, threatening to impose triple-digit tariffs. This escalation followed Beijing's announcement last Thursday of a significant expansion in export controls on rare earths, crucial materials for the manufacturing of almost all modern electronics. Amid this climate of geopolitical uncertainty, gold reached a new all-time high of $4,217.95 an ounce, up 1.6%, as investors turned to this traditional safe haven.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
