Semiconductor Party Over in a Day?...Intel, SpaceX Plummet Together on Samsung Shock

▲ US stock market, semiconductors, bear market, crude oil/AI generated image

The semiconductor rally that had revived the previous day collapsed in just one day, causing the Nasdaq to drop by 1.2%. This, coupled with Intel's 9.7% plunge and SpaceX's 6.8% sharp decline, re-froze investor sentiment in tech stocks.

According to the U.S. economic news outlet Barron's on July 7 (local time), the Nasdaq Composite Index fell by 1.2%. The Dow Jones Industrial Average slipped by 131 points (0.3%), and the S&P 500 Index dropped by 0.5%, with all three major U.S. indices closing lower.

The direct hit came from semiconductor stocks. The iShares Semiconductor ETF plummeted by 5.1%, Intel (INTC) fell by 9.7%, Micron Technology (MU) by 4.7%, Applied Materials (AMAT) by 6.5%, and Lam Research (LRCX) by 6.9%. The previous day's rebound in semiconductor stocks lost momentum in just one day.

The selling pressure originated from South Korean semiconductor stocks. Despite Samsung Electronics' quarterly earnings exceeding market expectations by 6%, its stock price plunged by about 7%. Deutsche Bank analyst Jim Reid analyzed, "The earnings exceeding expectations by 'merely' 6% seems to have triggered profit-taking."

SpaceX also closed at $149.47, down 6.8% on its first day of inclusion in the Nasdaq 100. Among the 15 new investment opinions from Wall Street, 14 were "buy" and one was "hold," but this could not prevent the sharp drop in stock price. However, six out of the 11 sectors in the S&P 500 rose, and 56% of the index's constituent stocks increased, indicating that the impact of the decline was concentrated more on semiconductor and AI-related stocks than on the overall market.

In the latter part of the trading day, the U.S. government's announcement to withdraw the waiver for sanctions on Iranian crude oil further pressured the market. Brent crude futures surged over 5.1% to $75.65 per barrel, and West Texas Intermediate (WTI) crude futures rose 5% to $71.99. The U.S. 10-year Treasury yield surpassed 4.5%. While the energy sector gained 3%, the sharp rise in oil prices and Treasury yields added further burden to the already shaky tech-heavy stock market.

[Article Summary]

-Nasdaq fell 1.2% as the semiconductor stock rebound collapsed in one day, and the iShares Semiconductor ETF plummeted 5.1%.

-Intel plunged 9.7%, and SpaceX also dropped 6.8% on its first day of Nasdaq 100 inclusion.

-Following the U.S. announcement to withdraw the waiver for sanctions on Iranian crude oil, Brent crude surged over 5.1%, and the U.S. 10-year Treasury yield surpassed 4.5%.

*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.*