Stocks Stumble as Chip Rally Fades, Bond Losses Deepen

Wall Street traders pushed stocks into a seesaw session on Thursday as a morning rally in chipmakers lost steam and bond prices kept falling. The moves show investors are still wrestling with the Federal Reserve’s latest policy signal, delivered this week by Chairman Kevin Warsh. The benchmark S&P 500 swung between gains and losses before settling lower in afternoon trading. The tech-heavy Nasdaq also gave back early advances, dragged down by profit-taking in semiconductor stocks that had surged at the open. Meanwhile, U.S. Treasury bonds extended their slide, pushing yields higher for a third straight day. That volatility in fixed income—where prices move inversely to yields—suggests the market remains unsettled by Warsh’s remarks on inflation and future rate cuts. Traders had initially welcomed the Fed chief’s comments as a sign of steady policy, but a closer reading revealed no clear timeline for easing. That ambiguity has left both equity and bond investors guessing, fueling choppy trading. No major economic data is due until Friday, leaving the market to digest central bank commentary for direction. Analysts say the near-term path for stocks will likely hinge on whether bond yields stabilize or keep climbing.