"Samsung Plunge Seen as Major Risk" US Semiconductors Tumble... Oil Prices Surge [New York Stock Market]

International Oil Prices End Higher
Iran Attacks Qatari Vessel
US Revokes Sanctions Waiver on Iranian Crude Oil

On July 7 (local time), all three major U.S. indices closed lower, weighed down by a sharp decline in the semiconductor sector and a rise in international oil prices. Additionally, investor sentiment was negatively affected as international oil prices surged after Iran attacked a Qatari vessel in the Strait of Hormuz.

At the New York Stock Exchange (NYSE) that day, the Dow Jones Industrial Average (Dow) fell by 130.70 points (0.25%) to close at 52,925.15. The S&P 500 Index, which focuses on large-cap stocks, dropped 33.58 points (0.45%) to 7,503.85. The tech-heavy Nasdaq Index ended the session at 25,818.69, down 302.47 points (1.16%) from the previous trading day.

Inside the New York Stock Exchange. New York (USA) – Special Correspondent Yoonju Hwang

The semiconductor sector plunged that day, dragging the indices down. Notable declines included Micron, down 4.71%; Intel, down 9.66%; Qualcomm, down 1.88%; AMD, down 6.51%; Marvell Technology, down 7.45%; and KLA, down 7.22%.

Mike Bailey, head of research at FBB Capital Partners, analyzed, "Expectations have risen, but fundamentals are not able to meet these overly high levels of demand, which is fueling the downward trend." He added, "I expect the trend of fund flows seen so far to continue."

The sharp drop in Samsung Electronics' stock price has been cited as a reason for the downward pressure on artificial intelligence (AI)-related stocks. Samsung Electronics closed about 7% lower after announcing strong second-quarter results the previous day.

Adam Crisafulli of Vital Knowledge commented, "The reaction to Samsung demonstrates one of the biggest risks the market will face in the coming weeks," and added, "While the second-quarter results are likely to be fairly solid in absolute terms, unlike the first-quarter season, current expectations are extremely optimistic, which means the bar has been set significantly higher."

Additionally, reports from foreign media that China's DeepSeek is developing its own AI chip also played a role, as this could reduce reliance on AI semiconductor companies like Nvidia.

SpaceX closed at $149.47, down 6.83% from the previous day, which is below its initial listing price. Mike Bailey, head of research at FBB Capital Partners, noted regarding the stock decline, "Given that the company is striving to become an AI company, this represents a kind of risk-off movement."

On the other hand, Eli Lilly rose 2.96%, JPMorgan Chase gained 0.44%, Walmart climbed 0.80%, and Microsoft (MS) rose 0.54%. There was a clear trend of capital flowing into other sectors such as healthcare, finance, and big tech (major information technology companies).

Escalating tensions in the Strait of Hormuz also emerged as a negative factor. Near the Strait of Hormuz, the Qatari-flagged liquefied natural gas (LNG) carrier Al Rekayat reportedly suffered a missile attack by Iran, which caused a fire in the engine room and led to an explosion risk.

Majed Al-Ansari, spokesperson for Qatar's Ministry of Foreign Affairs, condemned the incident, stating, "This is an unacceptable attack on the security of international navigation and global energy supplies, and a clear violation of international law."

In response, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced the cancellation of the 60-day temporary general license issued on June 21, which had permitted the production, delivery, and sale of Iranian crude oil.

International oil prices closed higher. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for August delivery settled at $70.44 per barrel, up 2.76% from the previous session. On the ICE Futures Exchange, Brent crude for September delivery finished at $74.16 per barrel, up 3.01% from the previous close.

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