Chipmaker AMD crossed a $1 trillion market capitalisation for the first time this week, capping a five-session winning streak as renewed demand for AI chips powered a semiconductor rebound on Wall Street.
AMD shares surged as much as 10% on Monday to push past the milestone, extending a run that has very nearly tripled the stock since the start of the year. Meta Platforms also posted double-digit weekly gains after its new Muse AI agent became the top free app on Apple's App Store, outpacing ChatGPT's early download pace. JPMorgan analyst Doug Anmuth wrote that Muse "has the potential to become the most widely used consumer AI application since ChatGPT."
Yields rain on the rally
The rally hit a wall on Wednesday, when the S&P Global Flash Composite Purchasing Managers Index jumped to 58.4 — the fastest US business growth in over five years — while input costs rose at their fastest clip in four years. Bond traders read the data as inflationary: the 10-year Treasury yield touched 5.1%, a first since 2007, and the 30-year hit 5.53%, its highest since 2004. Markets now price in a 68% chance of a Fed rate hike next month and a 50% chance of an additional hike in December.
A darker mood in Detroit
In contrast, the mood was darker in Detroit. A Cox Automotive forecast showed Ford and General Motors losing more US market share than any of the 13 automakers it tracks this year, as high gas prices push buyers toward hybrids. Ford logged its third straight weekly decline, and on Friday a supply problem temporarily halted F-150 production at its Dearborn Truck Plant. Ford's sales were down about 10% through August, with F-Series sales down 11%. Stellantis fared worse — it slid about 6% on the week and is now down more than 55% this year after several analyst downgrades over a thin product pipeline and weak cash generation. GM struck a calmer tone at the US All Start Conference on Wednesday, saying consumers remain resilient, delinquencies have not risen materially, and 2027 cash flow should be substantially better than this year's.
Between rising borrowing costs and a rough week for all three Detroit automakers, the AI trade's rebound looked like it was happening in a different economy entirely.
Sources:
Detroit Free Press: Why AMD and Meta (and its Muse) had a good week
AMD shares surged as much as 10% on Monday to push past the milestone, extending a run that has very nearly tripled the stock since the start of the year. Meta Platforms also posted double-digit weekly gains after its new Muse AI agent became the top free app on Apple's App Store, outpacing ChatGPT's early download pace. JPMorgan analyst Doug Anmuth wrote that Muse "has the potential to become the most widely used consumer AI application since ChatGPT."
Yields rain on the rally
The rally hit a wall on Wednesday, when the S&P Global Flash Composite Purchasing Managers Index jumped to 58.4 — the fastest US business growth in over five years — while input costs rose at their fastest clip in four years. Bond traders read the data as inflationary: the 10-year Treasury yield touched 5.1%, a first since 2007, and the 30-year hit 5.53%, its highest since 2004. Markets now price in a 68% chance of a Fed rate hike next month and a 50% chance of an additional hike in December.
A darker mood in Detroit
In contrast, the mood was darker in Detroit. A Cox Automotive forecast showed Ford and General Motors losing more US market share than any of the 13 automakers it tracks this year, as high gas prices push buyers toward hybrids. Ford logged its third straight weekly decline, and on Friday a supply problem temporarily halted F-150 production at its Dearborn Truck Plant. Ford's sales were down about 10% through August, with F-Series sales down 11%. Stellantis fared worse — it slid about 6% on the week and is now down more than 55% this year after several analyst downgrades over a thin product pipeline and weak cash generation. GM struck a calmer tone at the US All Start Conference on Wednesday, saying consumers remain resilient, delinquencies have not risen materially, and 2027 cash flow should be substantially better than this year's.
Between rising borrowing costs and a rough week for all three Detroit automakers, the AI trade's rebound looked like it was happening in a different economy entirely.
Sources:
Detroit Free Press: Why AMD and Meta (and its Muse) had a good week
