US Stocks Recover as Chip Stocks Lead Rebound
US Stocks Recover as chip and metals gains lifted major indexes and traders reposition ahead of the U.S. jobs report that could reshape policy expectations
KEY TAKEAWAYS
- Chip surge drove the recent market rebound, lifting major U.S. indexes.
- SOX had climbed to $450 and showed technical support near $435, underpinning gains.
- Investors will watch the Feb. 6 U.S. jobs report for policy and positioning signals.
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US stocks recovered on February 2–3, 2026, as gains in chip shares and metals firms boosted major indexes. Investors weighed fourth-quarter earnings, AI-driven semiconductor demand, and an upcoming U.S. jobs report that could influence policy expectations.
Major Index Moves and Semiconductor Rally
The S&P 500 closed February 2 at 6,976.44, up 0.5%, while the Nasdaq Composite rose 0.6% to 23,592.11. The chip stocks rally was a key driver of this advance. On February 3, the Dow rose even as technology names lagged, pulling back some gains in the other major indexes.
The Philadelphia Semiconductor Index (SOX) reached $450 in January, gaining 4.2% that week and about 12.3% year-to-date. It remained roughly 3.1% below its December 2025 peak, with technical support near $435. The SOX climbed in seven of nine sessions through January and stood about 9.2% above a $412 low as AI chip demand expanded approximately 35% year-over-year.
At the company level, Micron Technology reported a 12-month net profit margin of 28.2% and saw its shares rise 239.1% in 2025. NVIDIA posted a 53.0% net margin over 12 months, with shares up 38.8% last year. Industry signals supporting the rally included Taiwan Semiconductor Manufacturing Co.’s (TSMC) planned capital spending of about $42 billion for 2026. Analysts projected a near-term SOX target around $480 by mid-February if that support holds, while noting downside risk below $420. Lam Research was cited with roughly 25% upside to a $940 target based on AI demand.
Economic Data and Policy Outlook
Labor and sentiment data offered a mixed backdrop. U.S. unemployment was 4.4% in December 2025, with nonfarm payrolls increasing by 50,000. The University of Michigan’s consumer-sentiment index was revised to 56.4 in January 2026 from 52.9 in December.
Markets expected the Federal Reserve to hold its policy rate near 4.25% after the January 30 meeting, with potential cuts discussed for later. The European Central Bank and Bank of England were also forecast to maintain steady policy during the week of February 2.
Investors will focus on the February 6 jobs report and central-bank decisions for signals that could affect chip stocks and broader market positioning. Maintaining the semiconductor technical floor would support analysts’ near-term index targets, while a break below it would increase downside risk.
