US Stock Market Opening: Three Major Indexes Edge Higher, Philadelphia Semiconductor Index Up 2%, SpaceX Turns Negative
Taylor Wilson
U.S. stocks pared early gains, with the Philadelphia Semiconductor Index up 2.32% — far outpacing the broader market; attention now turns to today's Fed decision and new Chair Kevin Warsh's first press conference.
Why are semiconductors leading alone?
The Philadelphia Semiconductor Index rose 2.32%, dwarfing the S&P 500's 0.04% and Nasdaq 100's 0.25%. This means → money is crowding into one lane — chips — while the rest of the market hesitates.
Broadcom led at +4.44%, followed by Western Digital +3.63%, Marvell +2.72%, Qualcomm +2.58%, and TSMC +2.13%.
Nvidia, however, slipped 0.034%, bucking the sector trend. In plain terms = this rally favors chip stocks *other than* Nvidia.
What happened to Big Tech and SpaceX?
Meta fell 2.45%, Alphabet 2.01%, Amazon 1.64%, Tesla 1.48%, Microsoft 1.40% — of the mega-cap tech names, only Apple eked out a +0.13% gain.
SpaceX surged over 5% at the open, then reversed to -3.92%. This means → early optimism faded fast as profit-takers stepped in.
This reflects a classic pre-Fed pattern: capital rotating out of high-valuation growth stocks into sectors with more near-term certainty.
Which China ADRs are rising and which are falling?
The Nasdaq Golden Dragon China Index gained just 0.18%, masking sharp divergence underneath.
Winners: NIO +2.00%, UP Fintech +2.37%, Bilibili +1.94%, Futu +1.11%.
Losers: XPeng -1.91%, Alibaba -1.14%, Kingsoft Cloud -0.93%. In plain terms = China ADRs have no unified direction — stock-specific news matters more than sector sentiment.
What will the Fed do today?
Markets widely expect the Fed to hold rates for the fifth straight time at a target range of 3.5%–3.75%.
The real focus is not the rate decision itself but three things: ① new Chair Kevin Warsh's first press conference, ② updated economic projections, and ③ whether the dot plot — a chart showing each official's rate forecast — hints at a rate hike this year.
KPMG U.S. chief economist Diane Swonk expects some officials to signal a hike in the dot plot. This means → even if rates stay put, subtle shifts in language and projections could move markets.
How do economic data and geopolitics fit in?
May retail sales beat expectations, and pending home sales rebounded from April's revised low — resilient data give the Fed even less urgency to cut.
The 10-year Treasury yield dipped 1 basis point to 4.44%; the 2-year rose 1 bp to 4.08%, a divergence between long and short ends. This reflects consensus that short-term rates stay elevated, while long-term expectations are starting to soften.
Trump said the U.S. and Iran are expected to sign a peace deal this Friday, reopening the Strait of Hormuz with no transit fees; WTI crude edged up to $77.9/barrel, Brent to $80.6/barrel. In plain terms = if geopolitical risk truly cools, oil's upside is limited — and that's good news for inflation.
Content is for reference only, not financial advice.