Wall Street Weakens, AI and Chip Stocks a Weigh
US stock markets mostly fell on Monday (July 17th). Pressure came from weakening shares of artificial intelligence (AI) companies, as well as increasing macroeconomic uncertainty.
The S&P 500 index fell 0.3%, while the Nasdaq 100 fell 1.3%. Chipmaker stocks again became the main drag as investors began to question the sector's ability to meet the ambitious projections that previously fueled the speculative rally.
SK Hynix ADRs fell 8% after surging 13% in their trading debut last Friday. Shares of Nvidia, AMD, and Intel also fell more than 1%, while SanDisk and Micron fell more than 3%.
Meanwhile, the Dow Jones Industrial Average (DJI) remained slightly higher despite the market being overshadowed by the risk of high interest rates. The conflict between the United States and Iran continues to hamper energy exports from the Middle East, raising concerns about inflation and credit costs.
From a market analyst perspective, the decline in AI and chip stocks suggests investors are becoming more selective after the technology sector's strong rally. If energy prices continue to rise, expectations of high interest rates could strengthen again and put pressure on growth stocks, while the market also awaits earnings reports from major banks like JPMorgan and Bank of America. (arl)
Source: Newsmaker.id
