Wall Street Weakens, Chip Stocks Under Pressure
US stocks closed lower on Tuesday (July 7), pressured by a sell-off in chip stocks. The S&P 500 index fell 0.4%, the Nasdaq 100 fell 1.8%, while the Dow Jones Industrial Average fell 131 points after previously hitting a record high.
The greatest pressure came from the semiconductor sector. Investors began to question whether major AI-based companies could justify their astronomical infrastructure spending. These concerns put chip stocks under pressure again.
Negative sentiment persisted despite Samsung's 19-fold jump in quarterly profits. The market grew even more cautious after reports emerged that China's DeepSeek was developing its own AI chip, potentially increasing competition in the technology sector.
Several major chip stocks recorded sharp declines. Broadcom fell 0.8%, Micron fell 4.7%, AMD slumped 6.5%, and Intel plunged 9.7%. However, Nvidia still managed to gain 0.7%, indicating that investors remain selective in stocks considered to still be strong in the AI sector.
In addition to pressure from technology stocks, rising US bond yields also weighed on the broader market. Yields rose after attacks on tankers in the Strait of Hormuz rekindled concerns about energy inflation. In other sectors, Visa fell 1.4%, while Caterpillar weakened 3.1%. (arl)
Source: Newsmaker.id
