Semiconductor Stocks Could Signal Market Direction, Says NYSE’s Jay Woods

Stock market indexes have remained rangebound for the past month, but New York Stock Exchange insider Jay Woods is monitoring two critical stocks and economic data that could influence market direction. The S&P 500 managed to maintain key support levels around 7,600 and 7,620 last week, which Woods views as a positive indicator for the broad index. However, the index’s modest rebound to just under 7,750 represented a lower high compared to its August 13 peak near 7,800.

“We’re in a consolidation phase once again,” Woods observed.

Woods is also tracking oil prices, which surged earlier this week following Houthi attacks on Saudi Arabian energy infrastructure, contributing to modest losses in U.S. equities. Despite these pressures, the S&P 500 remained above the 7,600 level, dipping only slightly less than 0.5% by midday trading.

Curnow is now focusing on semiconductor stocks as potential market indicators. Nvidia reached $230 last week—its highest level since mid-May—but failed to penetrate the $235 resistance that marked its previous high. “It’s potentially forming a double top pattern, so watch that $235 level to see if it can break through,” Woods noted. “If it can’t, it might stall around $220 to $230 for some time. Breaking through could initiate the next upward movement.”

Broadcom declined last week following its quarterly earnings report but maintained important support at $350. “Watch to see if it holds,” Woods said. “If it fails to hold and closes below, a drop to $320 or $325 becomes likely, which won’t benefit the broader market.”

Additional market-moving events on Woods’ radar this week include:

Inflation Data: The August producer price index will be released Thursday, followed by the consumer price index on Friday. Investors are particularly focused on core inflation figures, as unexpectedly strong readings could pressure stock prices.

Adobe Earnings: Despite gaining 33% from its late June lows, Adobe remains down over 25% in 2025. Woods is watching whether the company can maintain the $250 level after Thursday’s earnings report—if it does, it could signal further upside for the recent rally.

Oracle Earnings: Investors are paying attention to the company’s debt issuance strategy. According to Woods, if Oracle addresses investor concerns about its debt load during Thursday’s report, the stock could rise above its 200-day moving average of $168.

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