Level 1 - Absolute Beginner

On Thursday, US stocks went up. The day began badly, but it ended better.

Chip companies had a hard week. Their shares fell for a seventh day in a row.

Investors bought bonds and Apple. They wanted safer places for their money. Interest rates on bonds went down.

stock

a small part of a company that you can buy

chip

a tiny part inside a computer

investor

a person who puts money in something to make more

bond

a loan you buy from a government

safe

not risky

rate

a price or level

share

a part of a company

bank

a place that keeps money

Level 2 - Elementary

US stocks recovered on Thursday after a bad start. The Dow Jones index rose 556 points, or 1.08%. The S&P 500 gained 0.33%. The Nasdaq ended almost flat, up 0.08%, after it had fallen 1.4% at the open.

Chip stocks stayed weak. An index of chip companies fell 0.88%, its seventh drop in a row. Investors worry about how companies will pay for big AI projects, especially after Wednesday's high inflation report.

Money moved into government bonds. The yield on the 10 year Treasury fell to 5.09%, and the 30 year yield fell by 10 basis points to 5.43%.

Many investors also chose Apple as a safe place. Home building companies rose because lower yields can mean cheaper loans.

recover

to get better after a fall

index

a number that shows how a group of stocks is doing

inflation

a rise in prices over time

yield

the income you earn from a bond, shown as a percentage

Treasury

the part of a government that handles money and debt

basis point

one hundredth of one percent

homebuilder

a company that builds houses

loan

money you borrow and must pay back

Level 3 - Intermediate

Wall Street staged a partial rebound on Thursday after a chip led sell-off. The Dow gained 556 points, or 1.08%, and the S&P 500 added 0.33%. The Nasdaq closed up 0.08%, having dropped as much as 1.4% when trading opened.

Semiconductor shares remained under pressure. A closely watched chip index slid 0.88% for a seventh straight session, after falling as much as 4.4% during the day. The worry is about AI financing: Wednesday's hot inflation report raised fears that higher interest rates will make it costlier for companies to fund their AI spending.

CoreWeave was a focus of that anxiety, and Nvidia chief executive Jensen Huang said he did not believe the company would need a bailout from Nvidia.

Investors rotated into Treasurys, pushing the 10 year yield down to 5.09% and the 30 year yield down 10 basis points to 5.43%. Apple became a refuge for those avoiding chips, and homebuilders rallied as borrowing costs eased.

rebound

a recovery after a decline

semiconductor

a material used to make chips

session

a period of trading in a day

financing

providing money for a project

bailout

financial help given to a company in trouble

rotate

to move from one thing to another

refuge

a place of safety

borrowing costs

the price paid to borrow money

Level 4 - Advanced

Wall Street engineered a partial recovery on Thursday following a chip driven rout, with the Dow adding 556 points, or 1.08%, and the S&P 500 climbing 0.33%. The Nasdaq finished 0.08% higher after sinking as much as 1.4% at the open.

Semiconductor stocks were the exception. A widely followed chip index fell 0.88%, extending its losing streak to seven sessions and having plunged as much as 4.4% intraday. The underlying anxiety concerns the cost of financing the AI build-out, which Wednesday's hot inflation print made worse by reviving the prospect of higher borrowing costs.

CoreWeave sat at the centre of those concerns, prompting Nvidia chief executive Jensen Huang to push back and say he did not expect the company to require a bailout from his own firm.

A flight to safety lifted Treasurys: the 10 year yield sank to 5.09% and the 30 year yield tumbled 10 basis points to 5.43%. Apple emerged as a haven for investors steering clear of chips, while homebuilders rallied as lower yields promised cheaper mortgages.

rout

a heavy defeat or sharp decline

extend

to make something last longer

intraday

happening within a single trading day

build-out

the large scale construction of infrastructure

print

a published data release such as inflation figures

push back

to resist or reject a claim

flight to safety

a move of money into low risk assets

haven

a safe place