The
chipmaker's shares jumped about 5.7% as it announced plans to
spend as much as $20 billion to build two factories in Arizona
and open its factories to outside customers.
U.S.-listed shares of rival Taiwan Semiconductor dropped 2.6%,
while semiconductor equipment makers Lam Research Corp, Applied
Materials Inc and ASML Holding gained between 4.4% and 5.7%.
Wall Street's main indexes stumbled on Tuesday, weighed down by
concerns about the cost of infrastructure spending and potential
tax hikes to pay for President Joe Biden's $1.9 trillion relief
bill.
U.S. Federal Reserve chair Jerome Powell and Treasury Secretary
Janet Yellen will resume their Congressional hearings later in
the day.
Economy-linked energy and banks stocks have come under pressure
recently as investors booked profits after a sharp rally on
recovery hopes and moved into beaten-down technology and growth
names that were hit by elevated bond yields.
Facebook Inc, Alphabet Inc, Apple Inc, Microsoft Corp and
Amazon.com Inc rose between 0.6% and 0.7%.
At 6:30 a.m. ET, Dow E-minis were up 96 points, or 0.3%, S&P 500
E-minis were up 14 points, or 0.36% and Nasdaq 100 E-minis were
up 100.75 points, or 0.77%.
Bitcoin gained about 4% as Tesla Inc chief Elon Musk said the
company's electric vehicles can now be bought using bitcoin and
the option will be available outside the United States later
this year.
Tesla's shares advanced about 1.6%.
GameStop Corp dropped 13% after the video game retailer said it
may sell new shares as the company that led the Reddit rally of
"meme stocks" looks to take advantage of a more than 800% surge
in its stock price since January.
Energy stocks Exxon Mobil, Chevron Corp, Schlumberger NV,
Occidental Petroleum and Marathon Oil were up between 1% and
4.2%, as crude prices rebounded from a 6% fall in the last
session. [O/R]
IHS Markit's flash reading at 9:45 a.m ET is likely to show
business activity in the manufacturing and services sectors
improved in March from the prior month.
(Reporting by Devik Jain and Medha Singh in Bengaluru; Editing
by Maju Samuel)
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