An expansion of U.S. Treasury debt buybacks pulled long-term bond yields lower on Thursday, giving technology and semiconductor stocks room to rebound after Wednesday's AI-chip selloff. Nasdaq futures rose about 0.4%, but hawkish Fed minutes mean the relief could still be tested.
Treasury buybacks push yields lower
The U.S. Treasury expanded its purchases of older, longer-dated government bonds, a move that can improve bond-market liquidity and lift demand for long-term debt. That combination helped push yields lower.
Lower long-term yields matter for technology stocks because those yields are used to discount a company's future profits back to present value. When yields fall, earnings expected many years out become worth more today, and AI and technology firms are especially sensitive since much of their expected value sits far in the future.
However, a Treasury buyback is not the same as the Fed launching quantitative easing. It can ease pressure on yields without erasing government borrowing or inflation risk. That distinction matters after the latest FOMC minutes showed many participants believed higher rates could still be necessary if inflation does not keep falling.
Semiconductor rebound needs U.S. confirmation
South Korea's Kospi rose about 6.1%, with SK Hynix gaining 14.1% and Samsung Electronics rising 9.7%, reversing part of Wednesday's steep AI-chip selloff.
SK Hynix has a company-specific catalyst: a $28.6 billion share repurchase and cancellation program. Samsung's rally looks more tied to the broader semiconductor rebound, falling yields and short covering. The next test comes from U.S. names such as Sandisk, Micron, Nvidia and Broadcom: if they follow the Korean chipmakers higher, Wednesday's selloff may look like a positioning flush, but a failure to respond despite lower yields would signal lingering concern over AI valuations.
Is the Nasdaq breakout holding?
Lower yields and the Asian chip rebound gave U.S. futures a supportive backdrop, yet the technical question is whether buyers can defend the Nasdaq's recent breakout area once the U.S. session opens.
Three signals will help confirm it: continued stability or further declines in Treasury yields, participation from U.S. semiconductor leaders, and Nasdaq futures holding the breakout area rather than briefly trading above it and falling back below.
The rally is not isolated to chips. Bitcoin-related stocks such as Strategy and Coinbase also gained as Bitcoin moved toward $70,000, adding to the sense that risk appetite is broadening beyond a single sector. Earnings from Walmart, Alibaba and Deere could still reshape the day's mover list, but for tech and the Nasdaq the practical test stays the same: separate the catalyst from the confirmation.
Source: Investinglive
Trading involves risk.
Risk Disclaimer
