What Happened?
A number of stocks jumped in the afternoon session after Treasury yields retreated below 5% and oil prices declined, sparking a recovery across growth-oriented equities following the Federal Reserve's interest rate increase.
The benchmark 10-year Treasury yield dropped to 4.949%, alleviating pressure on borrowing costs and valuation multiples per CNBC. Technology and semiconductor stocks had faced sharp selling in the prior session after the Federal Reserve unanimously raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4.00%. Lower yields often provide a tailwind for technology companies, whose high-growth valuations are sensitive to the discount rates applied to projected earnings.
Additionally, falling energy prices eased worries regarding persistent inflation, helping major stock indices rebound from their post-announcement declines.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Data Storage company Snowflake (NYSE: SNOW) jumped 1.9%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
- Content Delivery company F5 (NASDAQ: FFIV) jumped 2.8%. Is now the time to buy F5? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 3.1%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
- Analog Semiconductors company Impinj (NASDAQ: PI) jumped 1.8%. Is now the time to buy Impinj? Access our full analysis report here, it’s free.
- Analog Semiconductors company Power Integrations (NASDAQ: POWI) jumped 4.6%. Is now the time to buy Power Integrations? Access our full analysis report here, it’s free.
Zooming In On Power Integrations (POWI)
Power Integrations’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 6.3% on the news that macroeconomic relief from declining Treasury yields and lower oil prices, coupled with robust artificial intelligence demand projections, boosted sentiment across the chip industry. Per TipRanks, Nvidia CEO Jensen Huang reaffirmed long-term projections of $3 trillion to $4 trillion in global AI infrastructure spending by 2030, reinforcing structural growth expectations for hardware providers. This sentiment was further supported by solid AI cloud performance reported by Oracle, which signaled sustained enterprise appetite for data center expansion. Meanwhile, macroeconomic tailwinds offered additional momentum as falling Treasury yields and lower energy costs eased broader market pressures following a recent pullback. Together, these factors lifted optimism for key chipmakers, including Nvidia, Advanced Micro Devices, Micron Technology, and Intel, highlighting how broader economic signals and sustained cloud computing investments continue to drive sector-wide valuations.
Power Integrations is up 32.2% since the beginning of the year, but at $49.32 per share, it is still trading 43.5% below its 52-week high of $87.35 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Power Integrations’s shares 5 years ago would now be looking at only $460.12.
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