US Blue-Chip Performance: Chip Stocks Lift US Market, ARM and Nvidia Soar 10.3%, 8.1%

Overnight, US stocks staged a strong V-shaped recovery, driven by a surge in chip stocks.

The Nasdaq Composite Index rose 2.17%, up 15.9% year-to-date; the S&P 500 Index gained 1.07%, up 16.4% year-to-date; and the Dow Jones Industrial Average rose 0.31%, up 8.4% year-to-date.

Arm(ARM) soared 10.3%, with a trading volume of $1.48 billion, and has risen 86.7% year-to-date; Nvidia(NVDA) surged 8.15%, with a trading volume of $49.49 billion, and has risen 136.1% year-to-date; Broadcom(AVGO) and ASML(ASML) also jumped 6.7% and 6.5%, respectively.

In terms of news, during the overnight session, Jensen Huang, CEO of Nvidia, spoke at a technology conference hosted by Goldman Sachs, telling the audience, "(The demand for Nvidia's products) is very strong, everyone wants to be the first to get them, everyone wants to get as many as possible."

He specifically mentioned that the demand for the latest generation chip "Blackwell" is strong, and suppliers are catching up, "We may have more emotional customers now, and that's understandable. Things are a bit tense right now, and we're doing our best."

Driven by Huang's speech, Nvidia's stock price rose significantly and continued to climb, and other chip stocks also continued to rise.

As for ARM's surge, in addition to being driven by Nvidia, JPMorgan Chase also gave Arm its latest "overweight" rating, praising the chip design company's demand for artificial intelligence products. JPMorgan pointed to Arm's role in the technology industry's shift to edge AI. JPMorgan gave Arm an "overweight" rating with a target price of $175.

On the downside, healthcare stock AbbVie (ABBV) and insurance stock Chubb (CB) were among the biggest decliners.