Nasdaq extends gains as chip stocks rally and Boeing weighs on Dow

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Nasdaq gains as chips rally

Highlights

Nasdaq posts a second straight day of gains driven by a technology and semiconductor rally, as Broadcom surges over 4% on a reported $63 billion chip financing plan.
Chipmakers Advanced Micro Devices, Micron, Intel, and Nvidia rally between 0.81% and 5.5%, while CoreWeave and Nebius Group jump 8% and 11.2% respectively, after positive news on Anthropic's IPO and financing.
Boeing drops nearly 10.7% after earnings miss and production cuts, while UPS climbs 5.7% on profit and revenue beats and an upgraded full-year outlook.

Chip rally drives broader market move

As reported by Cboe Global Markets, investors rotate into technology and semiconductor stocks after the strong market response to Anthropic's initial public offering filing, giving the Nasdaq a second straight day of gains. The move also gets support from weaker crude prices as talks about ending the war between the U.S. and Iran push WTI crude below $100 a barrel, down about 2%.

Broadcom rises more than 4% as reports say the company leads a $63 billion financing arrangement tied to chip purchases for Anthropic and other companies. Bank of America, Blackstone, Citigroup and Morgan Stanley are brought into a special-purpose vehicle that would buy Broadcom's custom chips and networking gear and lease them to Anthropic, while Broadcom also agrees to provide residual-value support if the equipment is worth less at lease end.

The reports lift other chipmakers as well, with Advanced Micro Devices up 5.5%, Micron ahead more than 3%, Intel gaining nearly 3.5% and Nvidia adding 0.81%. Neocloud names also advance, including CoreWeave, which climbs nearly 8%, and Nebius Group, which jumps 11.2%.

Oracle adds 4.5% after OpenAI expands its partnership with the company to bring ChatGPT into Oracle's business applications. OpenAI is also expected to file for an initial public offering next year.

Earnings, Fed outlook and sector impact

Boeing is the biggest drag on the Dow, falling nearly 10.7% after reporting earnings that miss Wall Street expectations despite narrower quarterly losses. Sentiment worsens after executives say on the conference call that Boeing is cutting 737 Max production and delivery targets because of slow wing production, and that it will not reach its goal of 47 jets per month until the second half of next year.

United Parcel Service rises 5.7% after beating Wall Street's profit and revenue forecasts and raising full-year guidance again. The update suggests cost-cutting and efficiency efforts are supporting margins in the package delivery and supply chain sector even as investors remain selective across industrial names.

Attention now turns to the Federal Reserve's two-day meeting, which begins Tuesday, with an interest-rate decision due Wednesday. CME's FedWatch tool shows a 92.8% probability that rates stay unchanged at 3.75% to 4.0%, while Microsoft and Alphabet earnings due after Wednesday's close are set to test whether large-cap technology can sustain the market's momentum.

Our earlier Nasdaq 100 (NDX) outlook explained how the index rebounded as investors positioned for major earnings releases and potential Federal Reserve decisions, with renewed inflows into technology shares supporting the move. It also highlighted mixed momentum and key technical levels, flagging a likely consolidation range and noting that a clear break above resistance would be needed to extend gains.

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