Dow Sets Record, Chip Stocks Regain Heat
The US stock market rallied on Monday (July 6th), driven by gains in heavyweight chip stocks. The S&P 500 rose 0.4%, the Nasdaq 100 gained nearly 1%, while the Dow Jones Industrial Average moved above 53,000 for the first time in history.
Shares of memory chip manufacturers were among the main market drivers. Investors were closely monitoring Samsung's sales update and SK Hynix's planned ADR issuance on Friday. This sentiment has revived interest in semiconductor-related stocks after volatile trading the previous week.
The chip stock rally is still supported by strong expectations for demand for artificial intelligence (AI). Shares of Micron and SanDisk each rose more than 2.5%. Nvidia also rallied after its assembly partner, Hon Hai Precision, signaled continued growth in AI demand.
However, the market remains cautious about the AI sector's already high valuations. Concerns arose after Meta sold some of its spare computing capacity, while SpaceX's new bonds traded at high-yield levels shortly after the company's major IPO. This situation has made investors remain selective in pursuing technology stocks.
Outside of the technology sector, stocks from other sectors moved relatively stable after posting strong performances last week. Market focus now turns to the FOMC meeting minutes, which will be released Wednesday. The document is expected to provide insight into how the Fed balances the risks of inflation and a slowing labor market.
Source: Newsmaker.id
