Wall Street Mixed, Chip Stocks Remain Under Pressure
US stock markets closed mixed on Monday (July 27th). The S&P 500 index edged up 0.02%, the Dow Jones Industrial Average gained around 262 points, or 0.5%, while the Nasdaq Composite fell 0.18%.
Market movements were helped by falling oil prices and a recovery in some semiconductor stocks from session lows. However, pressure on the technology sector continued to limit index gains.
The VanEck Semiconductor ETF fell around 2%, extending its decline from Friday. AMD shares fell 4%, Teradyne fell 5%, while Micron Technology fell around 3%.
Chipmaker shares had previously rallied after Chinese semiconductor company CXMT made a major debut on the Shanghai Stock Exchange. However, concerns about increasing competition and China's technological developments weighed on sentiment.
Pressure increased after reports emerged that China had begun developing deep ultraviolet lithography machines for semiconductor production. This technology has the potential to increase competition in the chip equipment industry.
US-traded ASML shares fell more than 8% following the report. As long as uncertainty about China's technological competition remains high, semiconductor stocks could remain volatile and weigh on the Nasdaq. (arl)
Source: Newsmaker.id
