Chip Stocks Plunge, Nasdaq Under Pressure
US stock markets traded mixed on Monday (July 13th), with the S&P 500 weakening as semiconductor stocks also suffered following the sharp decline in global markets. Investors were also monitoring the latest developments in the Middle East and awaiting a series of corporate earnings reports this week.
The S&P 500 index fell 0.3%, while the Nasdaq Composite fell further by 1%. The main pressure came from technology and chip stocks. Meanwhile, the Dow Jones Industrial Average still managed to gain 164 points, or around 0.3%.
Semiconductor stocks were the main market drags. US-listed SK Hynix shares fell 7% after previously surging 13% in their Nasdaq debut on Friday. Micron Technology fell 6%, Sandisk slumped 10%, Seagate Technology fell 6%, while Advanced Micro Devices and Intel each fell around 4%.
Market sentiment was also weighed down by renewed tensions between the United States and Iran. The two countries exchanged airstrikes again over the weekend, with Iran targeting US facilities in several Gulf states and declaring the Strait of Hormuz closed. However, President Donald Trump denied these claims and said the vital shipping lane remained open to commercial traffic.
Trump had previously ordered airstrikes against Iran following attacks on commercial vessels passing through the Strait of Hormuz. These tensions pushed oil prices higher, although the price of oil has eased slightly from its daily highs.
WTI rose around 3% to US$73.68 per barrel after briefly reaching US$75.08. Meanwhile, Brent also strengthened around 3% to US$78.48 per barrel after previously rising to US$79.80. The rise in oil has raised market concerns about the risk of renewed inflation, which could influence the direction of the Fed's interest rates.
As a result, technology stocks and risk assets could still be under pressure if the Middle East conflict escalates and oil prices remain high. However, the energy sector could still benefit from rising oil prices. For Wall Street, the next focus will be on corporate earnings reports and signals about whether the pressure in chip stocks is simply profit-taking or the beginning of a deeper correction. (arl)
Source: Newsmaker.id
