Market
August 14, U.S. stocks closed modestly lower, snapping a three-day rebound amid cautious trading ahead of next week’s retail-sales and Fed minutes. The Dow Jones Industrial Average fell 0.20%, the S&P 500 eased 0.17% and the Nasdaq Composite lost 0.28% as investors pared risk after a summer rally. Higher Treasury yields and lingering concerns over inflation kept sentiment in check, while mixed tech leadership limited broader gains.
Semiconductor swings dominated the session’s action. Advanced Micro Devices surged 6.5% after unveiling a new AI accelerator roadmap, while Western Digital jumped 4.4% on reports of progress toward splitting its flash and HDD units. Applied Optoelectronics climbed 15.5% on strong preliminary revenue, and Silicon Motion Technology gained 7.9% as Chinese regulators cleared its $3.1 billion sale to MaxLinear. On the downside, Broadcom fell 5.9% after chatter of increased competition, and Applied Materials slid 5.1% following a bearish analyst note. Intel slipped 2.0%, Meta Platforms fell 0.9%, and Microsoft edged down 0.3% as investors rotated within mega-cap tech.
Elsewhere, smaller names and ADRs were mixed. China’s MindForge soared 30.0% on AI partnership headlines, while China SXT Pharmaceuticals leapt 31.2% amid retail-trading momentum. Aurora Mobile rose 9.1% and Four Seasons Education added 9.1%, but Jianzhi Education tumbled 24.9% and Planet Green dropped 20.4%, underscoring persistent volatility in lower-priced shares.
News
Micron Technology launched next-gen HBM4 memory chips, bolstering AI demand outlook. The company said its new high-bandwidth product will double capacity and power efficiency, supporting advanced accelerators. Analysts see the move widening Micron’s lead in the memory upcycle.
Applied Materials received an SEC subpoena over China sales compliance. The chip-equipment giant disclosed the probe covers export-control disclosures, raising regulatory overhang concerns and pressuring the stock.
Boeing announced an additional 50-jet order from United Airlines. The deal, valued near $10 billion, reinforces confidence in the 737 MAX program and supports backlog visibility for both companies.
Pfizer said its updated COVID-19 vaccine won FDA panel backing. Positive feedback boosts prospects for a fall booster campaign, potentially lifting revenue after recent sales declines.
Walmart unveiled expanded drone delivery to 60% of U.S. households. The retailer expects faster e-commerce growth and competitive differentiation against Amazon’s same-day offerings.
Citigroup began a strategic review that could lead to thousands of job cuts. Management aims to simplify the bank’s structure and improve profitability, with details expected at an investor day this autumn.
Exxon Mobil paused share buybacks amid rising capital spending needs. The move raises questions about future cash returns but underscores commitment to large-scale energy transition projects.
Rivian priced $1.3 billion green convertible notes to fund new R2 SUV production. Investors welcomed the lower coupon, though dilution worries limited stock gains.
Netflix introduced an ad-supported “Sports Hub” ahead of NFL documentary launch. The initiative targets incremental subscribers and advertising revenue as streaming competition intensifies.
The Treasury completed a record $27 billion 30-year bond auction at higher yields. Solid demand eased fears of supply indigestion, but the uptick in long-end rates kept pressure on growth stocks.
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