Semiconductor Stocks Power Wall Street Rebound Amid Manufacturing Constraints

Wall Street staged a broad rebound on Thursday, led by semiconductor stocks as investors reassessed the Federal Reserve's latest rate decision. The Nasdaq Composite rose 1.4%, while the S&P 500 added 0.9% and the Dow Jones Industrial Average gained 0.4%. Intel surged 8.6% after CEO Lip-Bu Tan warned that manufacturing constraints are leaving half of CPU demand unmet, with Micron Technology and SK Hynix also climbing 5.8% and 3.9%, respectively.

Nvidia rose 2.5%, contributing to gains in both the S&P 500 and Nasdaq Composite, while Advanced Micro Devices jumped 6.2%. The market's rebound was tempered by a brief explanation from Fed Chair Kevin Warsh following the central bank's unanimous 12-0 rate hike decision.

The dot plot revealed that 16 of 18 Fed officials expect at least one additional rate increase before the end of 2026, with 10 seeing no cuts through 2029. Mark Haefele of UBS Global Wealth Management expects further market gains while bracing for volatility along the way.