US stocks closed up on Wednesday, rebounding from earlier losses, after the Federal Open Market Committee (FOMC) released its minutes, which indicated that it may slow or halt its quantitative tightening process until the debt ceiling is raised. The 10-year T-note yield fell by -1.8 basis points to 4.533%, and March T-note prices recovered later in the day after new tariff threats were perceived as inflationary.
European government bond yields moved higher, with the 10-year German bund yield rising +6.3 basis points to 2.557%. The Euro Stoxx 50 closed down -1.31% on President Trump’s new tariff threat, which could hit some European companies hard. China’s Shanghai Composite Index closed up +0.81%, and Japan’s Nikkei Stock 225 closed -0.27%.
Chip stocks led the gainers, with Analog Devices rallying +9.74% after an above-consensus earnings report, and Microchip Technology showing a larger gain of +9.90%. Other chip stocks, including NXP Semiconductors and ON Semiconductors, also showed sharp gains.
However, some tech giants fell, including Meta Platforms (-1.76%), Nvidia (-2.56%), and Amazon (-1.24%). Tesla rallied by +1.82%, and Microsoft (+1.25%) also closed higher.
Palantir Technologies (-10%) fell on concern about reduced US defense spending, while Cadence Design Systems (-8.78%) fell after delivering disappointing management guidance. Arista Networks (-6%), Toll Brothers (-5%), DR Horton (-2%), KB Home (-2%), and Lennar (-1%) also closed lower due to disappointing earnings results.
Etsy (-10%) fell on reporting a sales miss, while Walmart Inc (WMT) is set to report earnings on Thursday.
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Source: https://www.nasdaq.com/articles/stocks-close-mildly-higher-10-year-t-note-yield-edges-lower