US Stocks Close Mixed After Pressure on Chip
The United States stock market closed mixed on Wednesday (June 24th), after pressure on chip stocks again weighed on major indices. The S&P 500 fell slightly by 0.1%, while the Nasdaq 100 weakened by 0.4%. Meanwhile, the Dow Jones Industrial Average managed to gain 182 points, supported by stocks in traditional sectors.
The market's primary focus is on Micron Technology's financial report, scheduled for release after the close of trading. Micron shares fell 0.4% ahead of the report, after plunging around 13% in the previous session. Investors are eager to see whether demand for memory chips, driven by the need for artificial intelligence (AI) infrastructure, remains strong enough to sustain the semiconductor sector's rally.
Pressure on the chip sector was also evident in other major technology stocks. Nvidia fell 0.7%, while Intel fell 0.3%. This decline indicates investor caution amid concerns that AI companies' capital expenditures have become excessive and may not yield expected returns.
Market sentiment is also influenced by the high funding needs in the AI sector. SK Hynix is reportedly seeking to raise around US$29 billion through a stock listing in the United States, shortly after SpaceX's blockbuster IPO. For some market participants, this massive funding wave signals that AI expansion requires significant capital, so valuation risks still need to be considered.
Source: Newsmaker.id
