Nasdaq Index: Dexcom, Meta, ON Semi Lead US Stocks Rebound on Trade Optimism

Stocks Rally on Jobs Data, Trade Hopes; Semis, Financials Drive Gains

U.S. stocks climbed sharply Friday as upbeat payrolls data and signs of potential progress on U.S.-China trade talks boosted risk appetite. The Dow rose 1.04%, while the S&P 500 added 1.16%. The Nasdaq gained 1.24%, lifted by strong performances in chipmakers and economically sensitive names.

What fueled the rally?

Nonfarm payrolls topped expectations and wage inflation came in below forecasts, reinforcing confidence in the U.S. economy without stoking rate hike fears. The bond market reacted with higher yields across the curve—10-year yields climbed 6.6 basis points to 4.30%, while the 2-year jumped nearly 9 basis points to 3.79%. Traders pared back bets on a near-term Fed rate cut.

In parallel, China’s Commerce Ministry said it is evaluating a U.S. proposal to resume trade talks, raising hopes for a thaw in tariffs that have weighed on corporate sentiment.

Which sectors led the charge?

Financials, transports, and semiconductors led the S&P 500, outperforming broad benchmarks. The chip-heavy Philadelphia Semiconductor Index (.SOX) surged on renewed confidence in global demand. ON Semiconductor, Lam Research, Micron, and Applied Materials were all top Nasdaq gainers, each rising over 4.5%.

Freight and logistics stocks also joined the rally. Old Dominion Freight Line advanced 5.7% as transports responded positively to the strong jobs number. In tech, Meta Platforms and Palantir added around 5%, helping bolster sentiment despite pressure on larger-cap names.

Who moved on the Nasdaq?

Dexcom was the top gainer, up over 15%, followed by Grail (+10%) and AppLovin (+9.4%). Arm Holdings also rallied more than 6% on optimism for semiconductor demand. Notably, several mid-cap tech names—Palantir, Meta, and ON Semiconductor—helped offset weakness in Apple and Amazon.

Atlassian led Nasdaq decliners, dropping 6.8% on earnings disappointment. Apple fell over 4% after warning of a $900 million tariff impact. Amgen and MercadoLibre also slipped, while defensive names like Exelon and Xcel edged slightly lower.

What’s next for the market?

The combination of solid job growth and easing inflation supports continued market strength. However, traders will stay focused on next week’s inflation data and any follow-through from U.S.-China trade signals. With yields rising and megacap guidance mixed, selective sector rotation remains in play. Semis, financials, and transports are showing leadership as the macro picture stabilizes.

More Information in our Economic Calendar.