Chip Stocks Continue to Under Pressure, Nasdaq Falls Amid AI Concerns
US stock indexes traded mixed on Tuesday (July 28th) as pressure on chipmaker stocks continued. The S&P 500 was flat, the Nasdaq 100 fell about 1%, while the Dow Jones Industrial Average rose about 300 points.
Concerns about slowing artificial intelligence infrastructure spending and the sustainability of data center investments weighed on computing and memory maker stocks. Micron and SanDisk plunged more than 7%, AMD fell about 5%, while Nvidia fell 1.5%.
Semiconductor sector sentiment was also weighed down by optimism about Chinese competitors after CXMT's strong initial public offering in Shanghai. Conversely, software and non-technology stocks tended to strengthen, with Microsoft and MetaTrader 5 trading slightly higher ahead of earnings.
Falling energy prices also helped ease credit costs after U.S. officials indicated an openness to diplomacy with Iran. JPMorgan rallied, leading the banking sector. Visa rose 1% ahead of its earnings report, while Coca-Cola jumped 3% after raising its business forecast.
Market Impact
Pressure on chip stocks could continue if tech company reports indicate a slowdown in AI spending or weakening margins. Conversely, positive reports from Microsoft and MetaTrader could help restore sentiment on the Nasdaq. Strength in the banking and consumer sectors, as well as falling energy prices, continue to act as a buffer against further Wall Street declines.
Source: Newsmaker.id
