Nasdaq jumps about 2%, led by Microsoft and chip stocks

Trading Review: Current Reports, Trends, Indices, Stock Prices, Bonds, Forex and Commodities and Analyst Recommendations

17:53

Chip stocks are recovering today after recent declines in the sector. The SOXX index is surging, but Qualcomm shares are lagging behind after providing a disappointing profit forecast that surprised Wall Street.

Qualcomm, which focuses on chips for the worlds of artificial intelligence and mobile, reported adjusted profit of $3.5 per share, compared to analysts’ forecasts of $3.41 per share. Adjusted revenue amounted to $12.25 billion, slightly above expectations.

However, the forecast for the next quarter disappointed investors. The company expects revenue in the range of $10.2 billion to $11 billion, while analysts had expected revenue of $11.18 billion. The gap between the forecast and market expectations raised concerns about the company’s future growth rate.

Qualcomm’s weakness stands out against the backdrop of a broader recovery in chip stocks, after the sector recently came under significant pressure due to concerns about the pricing of AI stocks, the scale of massive investments in the field and the fear that some expectations are already being reflected in prices.

While companies such as Microsoft have provided investors with positive signs about the return on AI investments, Qualcomm is signaling that not all companies in the industry are benefiting equally from the current wave of investments in artificial intelligence.

17:30

The Japanese yen is soaring against major currencies during US trading, without a clear catalyst, in a move that increases speculation that Japanese authorities have begun to intervene in the foreign exchange market after days of speculation on the subject.

Currently, the dollar has weakened by about 2% against the yen to 159 yen per dollar. The euro and the pound are also losing ground against the Japanese currency, with the euro down about 1.5% to 184.80 yen, and the pound weakening by about 1.4% to 215.45 yen.

16:56

Wall Street is moving sharply higher, after investors took advantage of recent declines to buy, while chip stocks are recovering and macro data indicates that the US economy continues to show resilience, but without signs of warming.

After sharp sales in one of the most densely held sectors in terms of investor positions, chip stocks (SOXX) are leading the gains. The Nasdaq 100 index jumped 2.1%, a day after entering technical correction territory. Microsoft shares jumped about 14% after its Azure cloud business posted its fastest growth rate in four years. The gains in Microsoft and chip stocks offset a sharp drop in Meta shares, which retreated after providing a disappointing revenue forecast for the upcoming quarter.

Investors’ attention now turns to reports from Apple and Amazon, which will be released after the close of trading and will provide more clues about the state of the “Magnificent Seven” stocks. The group has lagged the broader market this year, amid growing concerns that massive investments in artificial intelligence will not yield sufficient returns.

“Despite the short-term volatility, the outlook for U.S. stocks remains positive, thanks to strong corporate earnings, continued adoption of AI technologies, a resilient economy and financial conditions “Supporters,” said Samir Samana, head of equities and real assets at Wells Fargo Investment Institute.

16:40

Israelis on Wall Street:

Cybersecurity company Check Point is falling in trading after concluding the second quarter of 2026 with revenue slightly below analysts’ forecasts, and profit higher than them. Check Point also exceeded the profit forecast range it gave in the previous quarter. However, it is clear that investors were disappointed and the stock is down about 11% in pre-trade on Wall Street.

Technology company Radcom cuts annual revenue forecast, shares fall on Nasdaq. A month after the end of the second quarter, Radcom is now reporting that, according to a preliminary analysis, revenue in the quarter will total only $12 million, compared to analysts’ forecasts of about $19.1 million. At the same time, the company now expects annual revenue of $57-63 million, i.e. $60 million in the middle of the forecast range, down from $78.6 million in the previous forecast. This means that 2026 will end with a decrease in revenue of about 16%.

Radcom explains that there were delays in projects that delayed customer purchasing decisions, but that these were not contract cancellations, so the company estimates that these are timing considerations and not a decline in demand. The company expects to remain profitable on a non-GAAP basis for the full year, despite the decline in revenue. CEO Benny Epstein said that Radcom expects to return to double-digit growth in 2027.

Good news for fintech company Pagaya, which beat revenue and profit forecasts and raised its annual profit forecast. Pagaya provides a technology solution that allows financial institutions to allocate credit more accurately.

16:30

The leading indices on Wall Street are trading higher at the opening of trading, after the sharp declines recorded last night following the Federal Reserve’s decision to leave interest rates unchanged. The Dow Jones Industrial Average rose 0.4%, the S&P 500 added 0.6%, and the Nasdaq Composite rose 1.4%.

The gains were led by Microsoft, which jumped after reporting strong growth in its Azure cloud business. The chip sector also jumped, with the SOXX index rising more than 5%. On the other hand, Meta shares fell after providing a disappointing revenue forecast and reporting a 91% drop in free cash flow in the second quarter.

Stephen Evans, chief investment officer at Pave Finance, said that “this is a tale of two different strategies in the AI ​​field: one company is managing to increase profits despite heavy investments, while the other is allowing these costs to hit the bottom line.”

In the bond market, the upward trend in yields continues, with the 30-year government bond yield remaining near to its highest level since 2007, after the Fed decided to leave interest rates unchanged.

Wall Street closed particularly negative last night, with the Dow Jones Industrial Average plunging more than 1,100 points – its steepest daily decline since April 2025.