[New York Stock Exchange] Nasdaq Closes Lower on Weak Semiconductor Stocks... Apple Regains Top Market Cap Position

International Oil Prices Slide Across the Board

On the 27th (local time), the three major indices of the U.S. stock market closed mixed. As tensions in the Middle East eased and international oil prices declined, the Dow Jones and S&P 500 indices rose, while the Nasdaq index fell due to weakness in semiconductor stocks.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 52,210.08, up 262.83 points (0.51%) from the previous trading day. The S&P 500 Index, which is focused on large-cap stocks, rose 1.20 points (0.02%) to 7,413.18. The technology-heavy Nasdaq index ended 43.74 points (0.18%) lower at 24,932.08.

On this day, the market initially rose across the board as international oil prices fell following a ceasefire between the U.S. and Iran, but in the latter part of the session, semiconductor stocks weakened and dragged down the Nasdaq index.

The United States temporarily suspended the airstrikes on Iran that had continued for two weeks, and Iran also refrained from retaliatory attacks, easing tensions. Mike Waltz, U.S. Ambassador to the United Nations, appeared on NBC and said, "What the President is doing now, as we have seen over the past weeks, is leaving some room for dialogue."

As a result, West Texas Intermediate (WTI) crude oil for September delivery on the New York Mercantile Exchange fell 7.5% from the previous session to $82.61 per barrel. Brent crude oil for September delivery on the ICE Futures Exchange dropped 8.7% from the previous session to $88.36 per barrel.

Semiconductor stocks initially gained after the Chinese company CXMT successfully debuted on the Shanghai Stock Exchange, but broadly declined in the latter part of the session. AMD, Micron, and Teradyne led the fall in the semiconductor sector, dropping 5.17%, 2.25%, and 4.33%, respectively.

Thomas Martin, Chief Portfolio Manager and Partner at Globalt Investments, told CNBC, "There remains significant uncertainty about the future of Chinese companies," adding, "It is a product market environment with fierce competition and rapid technological progress."

Martin analyzed that as signs emerge of the artificial intelligence (AI) bubble deflating, investors are readjusting their portfolios. In particular, funds are shifting to consumer staples and communication services companies, as stock prices have not yet recovered from the record highs set at the end of June.

He added, "There is tremendous uncertainty in the technology sector," and "even among investors, there is significant uncertainty about how the situation will unfold and whether they should readjust their investments."

This week, the quarterly earnings results of big tech companies such as Amazon, Apple, Meta, and Microsoft are scheduled to be announced. CNBC reported that the earnings releases could have a direct impact on semiconductor firms, which have been major beneficiaries of the AI investment boom.

Meanwhile, Apple reclaimed its position as the world's largest company by market capitalization in 15 months, a title it had lost since April of last year. Apple's share price closed up about 1% at $336.91, bringing its market cap to $4.948 trillion (about 7,260 trillion won) and returning it to the top spot globally.

In contrast, Nvidia, the AI semiconductor company that had held the top market cap position since June of last year, saw its share price drop about 5% to $196.51 at the close. Nvidia's market capitalization stood at $4.756 trillion.

Meanwhile, the Federal Reserve is scheduled to announce its interest rate decision on the 28th. Experts expect the Fed to raise rates in September, but according to FedWatch, the market is also pricing in a greater than 30% chance that the benchmark rate could be hiked by 0.25 percentage points as early as this week.

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