01 Stock Market
The U.S. major indexes closed as follows: Dow Jones declined 1.87% at 49,918.78; S&P 500 declined 1.62% at 7,266.99; NASDAQ declined 1.98% at 25,169.50. A broad technology pull-back outweighed scattered strength in defensives, leaving all three benchmarks firmly in the red.
Semiconductor-linked names led the session’s unusual moves. Leveraged fund Direxion Daily Semiconductors Bull 3x Shares (SOXL) fell 10.43% at $180.65, while its bearish counterpart Direxion Daily Semiconductors Bear 3x Shares (SOXS) rose 10.79% at $6.57. SUPER MICRO COMPUTER (SMCI) fell 27.98% at $29.27 amid dilution concerns, and Advanced Micro Devices (AMD) fell 4.86% at $452.40. NVIDIA (NVDA) fell 3.73% at $200.42, while memory-chip giant Micron Technology (MU) shed 4.70% at $891.88. Bucking the slide, optical component maker Applied Optoelectronics (AAOI) gained 7.52% at $175.13, and inverse tech vehicle ProShares UltraPro Short QQQ (SQQQ) added 6.05% at $45.25.
Broader risk-off forces centered on rising funding worries and profit-taking in AI-themed shares. Heavy capex signals from major cloud providers, a surge in pre-IPO cash raising for SpaceX, and persistent rate-hike bets all contributed to today’s flight from growth equities. Defensive sectors such as energy outperformed, but the dominant narrative remained a repricing of richly-valued chip and software leaders following months of outsized gains.
02 Other Markets
U.S. 10-year Treasury yield was unchanged, latest at 4.54%. USD/CNH fell 0.05%, at 6.82; USD/HKD fell 0.01%, at 7.84. U.S. Dollar Index rose 0.06%, at 100.09. WTI crude futures rose 3.58%, at $93.25 USD/bbl; COMEX gold futures fell 1.46%, at $4,073.00 USD/oz.
03 Top News
1. Oracle warned of heavier AI-driven investment and fresh fundraising, sending its shares sharply lower. Management disclosed that capital spending hit well above prior targets and signalled plans to raise nearly $40 billion in debt and equity next year. Investors fear margin pressure as data-center expansion outpaces free cash flow.
2. SpaceX’s looming Nasdaq debut is already more than three times oversubscribed, underscoring record-setting demand. Bankers have collected about $250 billion in orders for the $75 billion offering, with allocations to retail investors expected to be unusually large. A successful first-day pop could lift broader risk appetite once the cash call passes.
3. Super Micro Computer announced a plan to raise roughly $7 billion to secure AI-server components, triggering a steep share sell-off. Investors fretted over dilution and execution risks as the hardware supplier races to meet surging demand from cloud customers. The stock plunged nearly 30% among the session’s worst performers.
4. Apple unveiled “Apple Intelligence”, a generative-AI suite that revamps Siri and photo editing. The upgrade requires devices with at least 12 GB of unified memory, potentially accelerating the iPhone replacement cycle. Analysts said the move deepens Apple’s ecosystem lock-in as on-device AI becomes a premium feature.
5. SK Hynix is preparing a U.S. ADR listing to tap deep pools of AI-focused capital. Sources said the chipmaker aims to float in New York as early as August, expanding its investor base beyond Seoul. The plan highlights intensifying competition for financing next-gen memory capacity.
6. South Korean authorities said dollar demand tied to SpaceX IPO allocations—estimated near $1.5 billion—has been cleared, easing pressure on the won. The currency had slid to a 17-year low as domestic investors scrambled for greenbacks but has since stabilized, helped by official market oversight.
7. Traders maintained about a 60% probability of a Federal Reserve rate hike by October after the latest inflation print matched expectations. Short-term interest-rate futures show diminished conviction in a September move but keep higher-for-longer pricing intact, underpinning elevated Treasury yields.
8. Micron shares extended their slide amid sector-wide weakness, yet analysts point to upcoming earnings as a potential catalyst. Forecasts call for a dramatic year-over-year profit surge driven by tight DRAM supply, and bulls argue memory demand will remain strong through 2027. Valuation debates continue as the cycle unfolds.
9. Optical-network names rallied, led by Applied Optoelectronics’ double-digit gain, on hopes of stronger AI-driven bandwidth demand. Peers Credo and Lumentum also advanced, while component makers reported rising orders for high-speed interconnect solutions. The burst of interest contrasted with the day’s semiconductor rout.
10. President Trump signalled readiness for further strikes on Iranian infrastructure, escalating Middle-East risk rhetoric. In media remarks, he said Tehran had delayed talks too long and “will have to pay the price,” heightening geopolitical uncertainty that could influence energy markets.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data Disclaimer: This content is for reference only and does not constitute investment advice.
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