The stock market rebounded on Thursday, recovering much of the week’s losses. Technology stocks led the gain.
Falling oil prices and easing Treasury yields helped improve investors’ sentiment following the Federal Reserve’s rate hike the previous day.
Overall, S&P 500 rose 1.1% to 7,637, while Nasdaq jumped 1.7% to 26,418.
Chart of the Day
Here is the one-year chart of Cadence Design Systems (CDNS) as of September 8, 2026, when the stock was at $284.
Cadence Design Systems saw its stock fall from $416 to $284 since our report last quarter on no real news. It could be the idea that AI will be able to design chips instead of needing the company’s software. It could also be an overall selloff in semiconductor stocks.
Cadence Design Systems and Synopsys have a duopoly in chip design software, and both stocks have sold off recently on concerns of a weakening moat. The company’s management said its competitive position had never been better, with deeper customer engagement and stronger relationships with Intel and Samsung.
Last quarter, Cadence Design Systems delivered 28% profit growth on 24% revenue growth. The company’s IP business grew more than 40% year-over-year, Core EDA increased 18% year-over-year, and System Design and Analysis rose 37% year-over-year, showing broad strength across the business.
CDNS is part of our Growth Portfolio. We think the stock is a good value here.
