Wall Street Moves in Heaps, Chip Stocks Support Nasdaq
The US stock market moved in a heap on Thursday (July 9th), as chipmaker shares rallied amidst the uncertain macroeconomic outlook. The S&P 500 index rose slightly, the Nasdaq 100 gained more than 0.5%, while the Dow Jones Industrial Average weakened marginally after recording a decline in the previous session.
The gains came primarily from the memory chip sector, as market participants reconsidered the speculative prospects for artificial intelligence (AI) infrastructure needs. This sentiment was further bolstered by the planned listing of ADRs by SK Hynix, the world's largest memory manufacturer, on Friday, which was reportedly sevenfold oversubscribed.
Shares of Micron and Sandisk also rose by around 3%, fueled by market optimism about chip demand related to AI development. This increase has made the technology sector, particularly semiconductors, once again a major driver of US stock index movements.
However, traditional sectors remain under pressure after previously outperforming the technology sector throughout July. On the other hand, US Treasury yields moved higher after tensions between Iran and the United States slowed tanker traffic in the Persian Gulf, raising concerns about the risk of energy inflation.
Meanwhile, Meta shares fell around 4% amid reports that the company is targeting production of its own AI chips in September. For the market, this condition indicates that interest in technology stocks remains strong, but geopolitical risks, energy inflation, and rising bond yields remain restraining factors for broader Wall Street gains.
Source: Newsmaker.id
