Summary
- Major U.S. stock indexes closed lower as profit-taking in semiconductor stocks weighed on the market in New York.
- Key names in the semiconductor sector, including Nvidia, Micron, AMD and Intel, as well as the Philadelphia Semiconductor Index, posted sharp declines.
- Meta Platforms surged 8.81% on news it may sell excess computing capacity tied to artificial superintelligence (ASI) development to outside customers.
Forecast Trend Report by Period
U.S. stocks closed lower on July 1 as profit-taking in semiconductor shares weighed on the market.
The Dow Jones Industrial Average fell 13.96 points, or 0.03%, to 52,305.24 at the New York Stock Exchange. The S&P 500 dropped 16.13 points, or 0.22%, to 7,483.23, while the Nasdaq Composite lost 173.69 points, or 0.66%, to 26,040.03.
Semiconductor stocks were broadly sold. Nvidia fell 1.25%, Broadcom lost 2.23%, Micron Technology tumbled 10.57%, AMD dropped 6.89%, Intel slid 9.03%, Applied Materials fell 9.97%, Lam Research lost 9.71% and SanDisk declined 10.62%. The Philadelphia Semiconductor Index sank 6.27%.
Other artificial intelligence megacap technology stocks mostly held up. Apple rose 1.73%, Microsoft gained 3.02%, Amazon advanced 1.41%, Alphabet added 1.07% and Tesla climbed 1.12%.
Meta Platforms surged 8.81% on news that it may sell excess computing capacity from infrastructure built for artificial superintelligence, or ASI, development to outside customers. The move suggests Meta could enter the cloud business, potentially disrupting a market long dominated by Amazon Web Services, Microsoft Azure and Google Cloud.
Hawkish comments from Federal Reserve Chair Kevin Warsh also pressured stocks during the session. Speaking at a European Central Bank forum, Warsh said inflation risks had eased over the past four weeks, but prices were still too high.
After Warsh signaled his determination to defend the Fed's 2% inflation target, markets further scaled back expectations for an interest-rate cut.
Oil prices fell. Brent crude for September delivery settled 1.9% lower at $71.57 a barrel on ICE Futures Europe in London, its lowest level since Feb. 26, before U.S. and Israeli strikes on Iran. West Texas Intermediate crude for August delivery dropped 1.3% to $68.58 a barrel on the New York Mercantile Exchange.
President Donald Trump told reporters at Joint Base Andrews near Washington that Iran's denuclearization was proceeding smoothly.
"They had very good talks, and we'll see," Trump said.
Noh Jung-dong, Hankyung.com reporter, dong2@hankyung.com
Korea Economic Daily
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