Markets Catch Their Breath: Chip Stocks Surge, Intel Craters, and Geopolitics Keep Wall Street on Edge

Wall Street is exhaling—but not relaxing.

After two straight sessions of gains fueled by easing geopolitical fears, U.S. stock futures slipped modestly, signaling a market that’s cautiously optimistic yet far from convinced the storm has passed. Beneath the surface, however, sharp moves in chip stocks, record highs in gold, and lingering political uncertainty reveal a market still navigating fragile terrain.

Following back-to-back rallies in the major averages, futures turned slightly lower:

The pullback suggests investors are pausing—not panicking—after a strong rebound that erased much of the week’s earlier losses.

Semiconductor stocks told a tale of extremes.

Nvidia shares climbed more than 1%, while Advanced Micro Devices jumped roughly 3% in early trading. The rally followed reports that Nvidia CEO Jensen Huang is planning a visit to China in the coming days—a move investors interpret as a potential signal of easing tensions or renewed business momentum in a critical market.

On the opposite end of the spectrum, Intel suffered a brutal reckoning. The stock plunged 13% after the company issued a disappointing first-quarter outlook, reigniting concerns about its ability to compete in an industry dominated by faster-moving rivals.

The divergence highlights a market that’s rewarding perceived growth and punishing uncertainty—swiftly and without mercy.

The broader market’s recent strength stems largely from a sudden thaw in geopolitical tensions.

For a second straight session, stocks rallied as investors reacted positively to signs of easing trade and political risk:

The rebound began after President Donald Trump called off threatened tariffs on imports from eight European nations, which had been set to take effect on February 1. That decision followed Trump’s announcement of a “framework of a future deal” with NATO Secretary General Mark Rutte regarding Greenland.

Trump later told CNBC, “we have a concept of a deal” with the Arctic island—comments that markets interpreted as a step away from escalation.

Despite the market’s relief, clarity remains elusive.

Greenland Prime Minister Jens-Frederik Nielsen said Thursday that he does not know what’s included in the proposed “framework” and emphasized that any agreement must respect Greenland’s sovereignty and territorial integrity.

As James McCann, senior economist at Edward Jones, put it:
“Details on the agreement are sparse and the geopolitical spat over the island could resurface, but investors are taking relief from the quick progress towards a deal following significant market turbulence at the start of the week.”

In other words: the market is betting on calm—but knows it could be temporary.

One of the most telling signals isn’t coming from stocks at all.

Gold futures settled at another record high, even as risk assets rebounded. That combination is unusual—and revealing.

“Interestingly, while risk assets are rebounding, gold is holding onto most of its gains,” McCann noted, pointing to persistent concerns over geopolitical uncertainty, the long-term trajectory of U.S. public finances, and increasing political pressure on the Federal Reserve.

Gold’s strength suggests investors are hedging their optimism, not abandoning caution.

Thanks to Wednesday and Thursday’s rally, the Dow has erased its earlier weekly losses and is now up just under 0.1% for the week.

The picture is less encouraging elsewhere:

Markets are rebounding—but not fully convinced.

Easing geopolitical fears have sparked relief rallies, chip leaders like Nvidia and AMD are drawing bullish attention, and small caps are breaking records. Yet gold’s surge, Intel’s collapse, and lingering political uncertainty all point to a market still walking a tightrope.

For now, Wall Street is hopeful—but it’s keeping one hand firmly on the brake.