Nasdaq Under Pressure, Dow Hits Record
The US stock market traded mixed on Tuesday (July 7th). Pressure came from chip stocks, while traditional economic sectors like banking and pharmaceuticals continued to show resilience.
The S&P 500 index was flat, the Nasdaq 100 fell 1.5%, while the Dow Jones Industrial Average rose nearly 200 points and set a new record high. This movement suggests investors are becoming more selective after the strong recent rally in the technology sector.
Memory makers weighed heavily on the Nasdaq. Micron and SanDisk each fell around 7%, despite Samsung posting a 19-fold jump in quarterly profits. The market is beginning to question whether AI companies' massive spending on infrastructure can truly generate comparable profit growth.
Pressure was also seen on SpaceX, which fell 1% after entering the Nasdaq 100 index. This situation adds to concerns that valuations of technology and AI-related stocks have become too high, making them vulnerable to profit-taking.
Conversely, banking and pharmaceutical stocks moved stronger. JPMorgan rose 1%, while Johnson & Johnson gained 3%. However, rising US bond yields following attacks on LNG tankers in the Middle East also weighed on market sentiment, as they resurfaced concerns about energy inflation.
Source: Newsmaker.id
