[New York Stock Exchange] Mixed Close as Tech Sell-Off Resumes

International Oil Prices Fall... Brent Crude Drops Below $75
Bitcoin Falls Below $60,000
Micron Earnings Exceed Expectations

On the 24th (local time), the three major U.S. stock indices on the New York Stock Exchange closed mixed. Despite international oil prices falling to their lowest levels since the outbreak of the Iran war, the S&P 500 and Nasdaq ended lower as the sell-off in technology stocks resumed.

On the New York Stock Exchange, the blue-chip-focused Dow Jones Industrial Average closed at 51,848.90, up 182.06 points (0.35%) from the previous session. The large-cap-focused S&P 500 Index fell 7.24 points (0.10%) to finish at 7,358.22, while the tech-heavy Nasdaq Index dropped 110.40 points (0.43%) to close at 25,476.63.

New York Stock Exchange. New York, USA - Photo by Yoonjoo Hwang

The market showed a downward trend, especially in semiconductors. After the market closed, Micron announced its earnings and ended down 0.31% from the previous day. Other declines included Sandisk down 2.50%, Google down 0.24%, Nvidia down 0.52%, Apple down 0.31%, Intel down 0.30%, and Qualcomm down 3.28%.

Mark Hackett of Nationwide analyzed that while the recent weakness in tech stocks has caused some concern, it appears to be driven more by position adjustments and appropriate sizing than by any fundamental warning signals.

Rick Gardner, Chief Investment Officer of RGA Investments, commented, "The decline in technology stocks is a healthy correction, as many tech stocks were in overbought territory," adding, "This recent drop suggests that investors are realizing that expectations for tech earnings have become so high that the hurdle for upcoming earnings releases in July is now even greater."

After the market closed, Micron announced sales of 41.456 billion dollars for the third quarter of fiscal year 2026 (March to May). This represents an increase of 346% year-on-year and 74% quarter-on-quarter.

Adjusted gross margin was 84.9%. Adjusted operating income was 33.681 billion dollars (about 52.0371 trillion won), and adjusted net income was 28.857 billion dollars (about 44.584 trillion won). Adjusted earnings per share (EPS) came in at 25.11 dollars.

Micron stated that shortages in DRAM and NAND flash supply are expected to continue beyond next year, and that the company is pursuing a business model transition through 16 large-scale long-term supply contracts.

International oil prices fell as geopolitical risks eased on news that the United States and Iran will hold working-level talks on the 29th or 30th of this month. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for August delivery fell 3.92% to 70.34 dollars per barrel compared to the previous session.

On the ICE Futures Exchange, Brent crude for August delivery dropped 4.33% to 73.74 dollars per barrel. For the first time since the outbreak of the Iran war, Brent crude fell below 75 dollars per barrel.

According to Bloomberg News, this helped ease inflation concerns ahead of the Federal Reserve’s major economic data releases and led to a decline in bond yields.

With the additional drop in international oil prices, expectations for an interest rate hike within the year are rapidly fading in the market. Traders had priced in two rate hikes by mid-2027, but as rate hike expectations have weakened, the market has now factored in a rate cut of about 40 basis points (1bp = 0.01 percentage points).

Nevertheless, this is unlikely to shake the consensus within the Fed regarding the need for rate hikes. Market experts are expecting the Personal Consumption Expenditures (PCE) Price Index for May, which will be released on Thursday, to show increases both month-on-month and year-on-year.

Meanwhile, the prolonged decline in Bitcoin and other virtual assets has pushed the price down to 59,023.98 dollars, the lowest since October 2024. This is the third time this year that Bitcoin’s price has fallen below 60,000 dollars.

The yield on 10-year U.S. Treasury notes is down 9 basis points from the previous session, standing at 4.398%. The yield on 2-year U.S. Treasuries has dropped 5.4 basis points to 4.146%.

This content was produced with the assistance of AI translation services.