AMD rises as U.S. stocks and chip shares rebound on lower yields

U.S. equities opened higher on Aug. 25 as falling Treasury yields, lower oil prices and a rebound in memory shares supported risk assets. MSX.COM data at the open showed the Dow Jones Industrial Average up 0.31%, the S&P 500 up 0.39% and the Nasdaq up 0.67%, while the VIX fell 0.19%. Dow futures had risen about 0.4% before the open in one reading, while earlier snapshots showed Dow futures up 0.11%, Nasdaq 100 futures up 0.52% and S&P 500 futures up 0.21%; a later snapshot showed Nasdaq futures up 0.96% and S&P 500 futures up 0.46%. AMD rose 3.25% at the open and gained 2.71% to $469.10 in Benzinga Pro premarket trading, with separate reports showing a 2.69% or 1.77% advance. Marvell Technology, Super Micro Computer, Cadence Design Systems and Cognex also advanced. The 10-year Treasury yield fell to about 4.70% from 4.74%, following the U.S. Treasury Department’s plan to increase longer-dated bond buybacks potentially above $4 billion, while oil dropped more than 3% to about $82.45 a barrel. Investors remained alert to whether lower oil reflected weaker demand and to Nvidia’s upcoming earnings, which could influence sentiment toward technology and growth stocks.

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