Wall Street Futures Move Mixed, Chip Stocks Weigh on Nasdaq
US stock index futures traded mixed on Tuesday (July 7th). Pressure on chipmaker stocks again fueled volatility, while traditional economic sectors continued to show resilience amid macroeconomic uncertainty.
S&P 500 futures moved slightly lower, while the Dow Jones Industrial Average rose around 150 points and headed for a new record. Meanwhile, significant pressure on semiconductor stocks sent the Nasdaq 100 down 1.5%.
Micron and SanDisk each plunged around 6% in premarket trading, despite Samsung posting a 19-fold surge in profits from the previous quarter. Samsung's strong performance is in line with the chip sector's rally this year, but investors are beginning to doubt whether the hyperscale AI company can justify its massive infrastructure capital expenditures.
Pressure was also seen on SpaceX, which fell 1% ahead of the company's inclusion in the Nasdaq 100 index. This situation suggests that enthusiasm for the technology and artificial intelligence (AI) sectors is starting to be tested by valuation concerns and high investment costs.
Conversely, banking and pharmaceutical stocks mostly moved higher, extending the positive momentum in traditional sectors. Meanwhile, bond yields edged higher after attacks on LNG tankers in the Middle East dampened hopes for a decline in energy inflation. (yds)
Source: Newsmaker.id
