Shares of technology companies surged as strong jobs data and weakened wage inflation weighed on Treasury yields.
South Korean tech giant Samsung Electronics warned its fourth-quarter profit would plunge, citing diminished demand for memory chips and smartphones.
Investors were already looking ahead to the next business cycle, however. The iShares Semiconductor exchange-traded fund, which tracks the PHLX SOX Semiconductor index, rose by roughly 5% as fears about the outlook for global economic growth eased.
"The semiconductors are a bellwether for growth of the global economy ... for an economy that may be skipping a deep recession and maybe just stalling out," said Quincy Krosby, chief global strategist at brokerage LPL Financial.
Shares of mega cap companies that have fallen out of favor in recent months, including Apple and Tesla, rose sharply.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-06-23 1730ET
