Oil Slump Fails to Lift Nasdaq as Nvidia, SK Hynix ADRs Tumble

Nvidia Falls 4.99%; SK Hynix ADRs Drop 7.47%

U.S. stocks ended mixed on July 27 as a sharp drop in oil prices failed to offset lingering concerns over AI-related semiconductor shares. Easing tensions in the Middle East helped the Dow Jones Industrial Average and the S&P 500 edge higher, but a broad selloff in chipmakers, led by Nvidia, dragged the Nasdaq lower.

The Dow rose 262.83 points, or 0.51%, to 52,210.08 at the close on the New York Stock Exchange.

The S&P 500 added 1.20 points, or 0.02%, to 7,413.18. The tech-heavy Nasdaq Composite fell 43.74 points, or 0.18%, to 24,932.08.

Investors welcomed the slide in crude after military tensions between the U.S. and Iran appeared to ease. But profit-taking hit technology shares as worries persisted over the durability of AI spending and valuations across the semiconductor sector.

Chip stocks were among the market's biggest losers. The Philadelphia Semiconductor Index fell 2.23%. Nvidia sank 4.99%, AMD lost 5.17%, Micron Technology fell 2.25%, Western Digital dropped 4.21% and Sandisk tumbled 11.02%. American depositary receipts of SK Hynix slid 7.47%.

Sentiment was also pressured by China's push to narrow the technology gap in semiconductors. The Information reported that China has started developing deep ultraviolet lithography equipment used in chip production. U.S.-listed shares of Dutch chip-equipment maker ASML fell 5.75%.

Investors also turned cautious ahead of earnings from major technology companies this week. Microsoft and Meta are set to report second-quarter results on July 29, while Amazon and Apple are due on July 30. The market is focused not only on earnings, but also on AI infrastructure spending and capital-expenditure plans.

Oil prices posted steep declines as expectations grew for talks between the U.S. and Iran. Brent crude futures settled at $88.36 a barrel, down 8.7% from the previous session, while West Texas Intermediate futures closed at $82.61, down 7.5%.

Prospects for U.S.-Iran talks also shaped investor sentiment. President Donald Trump told reporters aboard Air Force One en route to Michigan that the U.S. and Iran are in talks and that an agreement may be possible. He also signaled that military action could resume if the negotiations collapse.

Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com