A bomb launched by Samsung?...Micron (MU) and SanDisk (SNDK) plunge together

▲ Nasdaq, Samsung Electronics, Micron (MU), SanDisk (SNDK)/AI generated image

The sell-off in AI semiconductor stocks, originating from Samsung Electronics, put a brake on the New York stock market's record-high rally. Nasdaq futures fell 0.9%, and Micron Technology (MU) and SanDisk (SNDK) plunged 5% in pre-market trading, shaking investor sentiment in tech stocks, but Dow futures actually rose 0.2%.

According to Stocktwits on July 7 (local time), Nasdaq futures fell 0.9% and S&P 500 futures fell 0.3% at 4:30 AM on July 6 (local time). Dow futures rose 0.2%, and Russell 2000 futures remained flat. After Samsung Electronics' earnings announcement, its stock price fell, spreading caution in global tech stock investor sentiment.

The impact on semiconductor stocks was the most severe. Micron Technology and SanDisk each fell 5% in pre-market trading. This was due to the sell-off in Samsung Electronics spreading to profit-taking across the entire AI semiconductor and equipment sector after material exposure.

SpaceX (SPCX) also faced pressure ahead of its inclusion in the Nasdaq-100 Index. ARK Invest additionally purchased SpaceX shares on the 6th, but billionaire investor Jeremy Grantham criticized the company's valuation for being overly reliant on "third-rate artificial intelligence." Rivian Automotive (RIVN) continued to face pressure as its plan to raise approximately $1.5 billion by selling 75 million shares coincided with disclosures of stock sales by insiders and foundations.

Rocket Lab (RKLB) fell 2% in pre-market trading after a filing with the U.S. Securities and Exchange Commission (SEC) revealed that CEO Peter Beck plans to sell 5 million shares worth approximately $465 million. Microsoft (MSFT) rose slightly after reports that it would cut more than 3,000 Xbox employees as part of a restructuring of its gaming business. There were also reports that the growth in Game Pass subscribers significantly lagged behind the company's internal targets.

Walmart (WMT) garnered market attention by confirming summer price reductions on hundreds of items after U.S. President Donald Trump mentioned falling consumer prices. Investors are watching the trade balance announcement on the 7th, Levi Strauss earnings on the 8th, PepsiCo on the 9th, and Delta Air Lines earnings on the 10th, with major U.S. bank earnings officially kicking off next week.

[Article Key Summary]

-U.S. stock index futures showed mixed trends, with Nasdaq futures falling 0.9% while Dow futures rose 0.2%.

-After Samsung Electronics' earnings announcement, Micron and SanDisk plunged 5% in pre-market trading, leading to profit-taking in AI semiconductor stocks.

-SpaceX, Rivian, Rocket Lab, Microsoft, and Walmart were in the market spotlight based on individual news.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*