[New York Stock Exchange] Nasdaq Rises 1% on Semiconductor Gains, Dow Falls

International Oil Prices Edge Higher

On July 6, the three major U.S. stock indices are showing mixed performance. The Dow Jones Index started lower and extended its losses, while the Nasdaq is rising more than 1% thanks to strong buying in the semiconductor sector.

As of 10:27 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) is down 97.22 points (0.18%) from the previous trading day at 52,802.85. The S&P 500, which focuses on large-cap stocks, is up 43.30 points (0.58%) at 7,526.65, while the technology-heavy Nasdaq is up 290.42 points (1.13%) at 26,123.89.

On this day, the rebound led by technology stocks has halted the sharp declines in semiconductor companies. According to Bloomberg, investors are optimistic that an investment boom in the semiconductor industry will support robust earnings.

In terms of market capitalization, Nvidia is up 0.82%, Apple 0.94%, Amazon 0.27%, and Alphabet 0.29%. Other notable gainers include Intel, up 5.13%, AMD up 9.61%, Applied Digital up 5.67%, Qualcomm up 6.12%, Cisco Systems up 2.59%, and Micron up 3.51%.

Mark Newton, Head of Technical Strategy at Fundstrat, said, “The fact that the financial, healthcare, and industrial sectors reached all-time highs this week, expanding sector rotation, is a major positive. This more than offsets the correction in the semiconductor sector.” He went on to predict that the S&P 500 Index could reach 8,000 by mid-August.

Although semiconductor manufacturers have posted record quarterly earnings, the upward momentum has faltered due to intensified competition, potential overproduction, and expectations for massive AI investments, resulting in intermittent sharp declines in stock prices.

The market is waiting for further announcements from Nvidia and others to gain more clues about AI chip demand, as investors have yet to regain full confidence in the AI outlook despite Micron’s strong earnings guidance last month. In addition, attention is likely to focus on the capital expenditure outlook of hyperscalers amid concerns that there has been excessive recent investment in the AI sector.

Mark Haefele, Chief Investment Officer at UBS, stated, “This week, investors will be looking for signs that recent volatility in technology stocks is stabilizing. The market will assess how the recent pressure on hyperscaler stocks could alter perceptions of AI investment spending.”

This week, investors’ attention is focused on the Federal Reserve. The minutes from the June Federal Open Market Committee (FOMC) meeting, which was the first chaired by new Fed Chair Kevin Warsh, could provide clues about the future path of the Fed’s interest rates.

International oil prices are rising slightly. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery is trading at $68.93 per barrel, up 0.31% from the previous session. On the ICE Futures Exchange, Brent crude for September delivery is quoted at $72.37 per barrel, up 0.37% from the previous day.

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