When the chips are down, U.S. technology stocks always find a way.
The tech slump looks to be over and investors will soon have a shiny new toy to help reinvigorate the rally -- South Korea's SK Hynix.
The memory-chip giant will make its U.S. trading debut Friday, in potentially the second-biggest share sale in history -- behind SpaceX. The stock got a late 5% boost in Asian trading following reports that its U.S. listing is more than seven times oversubscribed. For context, SpaceX's IPO was around three or four times oversubscribed.
The stage is set perfectly for a successful debut. Plenty of air has come out of the memory rally recently as the big three -- SK Hynix, Samsung, and Micron -- all entered bear market territory earlier this week.
The broader technology sector has also taken a breather, with the Nasdaq Composite down 1.3% this month. The tech-heavy index looked primed for another fall Wednesday after President Donald Trump said the U.S. cease-fire with Iran was "over."
But at some point in afternoon trading, investors collectively decided "enough is enough." The PHLX Semiconductor Index, or SOX, sparked a comeback befitting a World Cup knockout game -- bouncing back from a 0.7% decline to close 2.2% higher. The Nasdaq eked out a 0.2% gain, having been down 1.1% at one stage.
A bumper, high-profile trading debut can put the momentum back into the so-called momentum trade. A word of warning, though -- they don't always last. SpaceX closed below its $150 debut listing price on Tuesday for the first time since its June 12 launch.
Investors will be hoping SK Hynix can deliver a happier memory.
-- Callum Keown
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Apple Inks $30 Billion Broadcom Deal for U.S.-Made Custom Chips
Apple will invest more than $30 billion over the next five years in an extended partnership with Broadcom to produce custom chips for its devices, with the iPhone maker saying the deal will spur the domestic production of more than 15 billion chips.
-- Apple said the new agreement was the largest so far under its American
Manufacturing Program and would enable Broadcom to expand and modernize
its manufacturing facilities in Fort Collins, Colo., with a $1.5 billion
capital expenditure investment.
-- Apple CEO Tim Cook said the new phase of the company's partnership with
Broadcom "accelerates our commitment to American manufacturing and
innovation" and deepens its investments in U.S.-based suppliers.
-- Broadcom already announced on Monday that it would supply Apple with
custom application-specific integrated circuits, known as ASICs, through
2031, although it hadn't disclosed the size of the deal.
-- Apple stock closed up 0.9% on Wednesday, while Broadcom rose 4.8%.
What's Next: Apple is looking to its long-term future. The company pledged in August 2025 to invest $600 billion in the U.S. over four years -- a commitment that has helped largely spare it from the Trump administration's trade tariffs.
-- Adam Clark and Janet H. Cho
Kevin Warsh's Fed Meeting Minutes Show Policymakers' Split
The minutes from Kevin Warsh's first policy meeting as chairman of the Federal Reserve underscored how divided policymakers were over the path of interest rates -- and unwilling to commit to a specific scenario without more data and updates on conflict in the Middle East. That could signal that the Fed will keep rates unchanged for longer.
-- The Federal Open Market Committee left the benchmark fed-funds rate
unchanged at 3.5%-3.75% at the end of its two-day meeting in June, but
delivered a more-hawkish-than-expected outlook. The minutes showed that
FOMC members remain conflicted and uncertain about the best path forward.
-- "Many" participants indicated the appropriate level of the federal-funds
rate would be "within or slightly below the current target range at the
end of this year," according to the minutes. A "few" participants still
believed the current policy stance is slightly restrictive.
-- Many policymakers noted that higher commodity prices and supply chain
disruptions may last longer than expected, and that businesses facing
higher costs could pass them along to consumers. Several officials said
their local companies remain cautious about raising prices, which could
temper inflationary pressures.
-- At the same time, Fed officials expect labor market conditions to remain
stable in the near term, and think the unemployment rate will stay close
to June's 4.2%. Payroll growth proved softer than expected in June, with
employers adding 57,000 jobs.
What's Next: Nine policymakers penciled in at least one rate hike by the end of 2026, according to their latest Summary of Economic Projections. Eight officials expected no changes to the benchmark rate, and only one official believed they would implement a rate cut this year. The next Fed policy meeting will take place July 28-29.
-- Megan Leonhardt and Janet H. Cho
The Cease-Fire Is Over. Brace for Higher Gas Prices.
The end of the cease-fire between the U.S. and Iran will likely cause gasoline prices to rise again, reversing their gradual decline in recent weeks. And Iran isn't the only reason -- Ukraine has stepped up attacks on Russian oil refineries, which could also cause fuel prices to spike.
-- The average U.S. gasoline price was $3.796 a gallon on Wednesday, down
from $3.847 last week and $4.164 last month, according to AAA. Consumers
should "watch for potential price increases soon," wrote Patrick De Haan,
GasBuddy's head of petroleum analysis. He thinks it could creep back to
$4.
-- Brent crude futures rose 5.2% to $78.02 a barrel on Wednesday, briefly
touching $80 intraday, after President Donald Trump said the cease-fire
is "over." Analysts were cautious, however, to declare that the agreement
is officially dead.
-- The real test depends in part on how Iran responds after Thursday, when
the mourning period over the killing of Ayatollah Ali Khamenei ends and
both sides show "whether there is still an appetite for a diplomatic
off-ramp," wrote Jorge León, head of geopolitical analysis at
Rystad.
-- Ukraine this week hit Russia's largest oil refinery, which will likely
decrease overall global fuel supplies. Russia is even considering
blocking fuel exports. Shares of Valero Energy, Marathon Petroleum, and
Phillips 66 all rose on Wednesday, by 6.3%, 5.4%, and 5%, respectively.
What's Next: Refiners bought cheap crude oil during the cease-fire and sold the fuel they produced for high prices, since fuel inventories remain low in many countries. Even if they are hurt by higher crude prices, refiners would likely continue benefiting from the fuel shortage.
-- Avi Salzman and Janet H. Cho
Levi Strauss Posts Earnings Beat, Raises Full-Year Guidance
Jeans and apparel maker Levi Strauss & Co. reported second-quarter earnings that beat expectations and raised its full-year guidance for the fiscal year that ends Nov. 29. Shares fell in after-hours trading on Wednesday.
-- For the quarter ended May 31, Levi's reported adjusted earnings of 28
cents a share on revenue of $1.56 billion, up 8% from a year ago. Sales
increased 9% in the Americas, to $815 million, including 5% in the U.S.;
4% in Europe, to $420 million, and 10% in Asia, to $284 million.
-- Beyond Yoga sales grew 16% year over year to $43 million, also above
expectations. Direct-to-consumer net revenues rose 11%, while wholesale
revenues increased 5%.
-- "Our evolution into a DTC-first, denim lifestyle company -- with a much
larger addressable market -- is translating to faster growth and higher
profitability," President and CEO Michelle Gass said.
-- Levi's declared a dividend of 16 cents a share, up 14% year over year,
totaling about $62 million, payable on Aug. 5 to Class A and Class B
shareholders of record at the close of business on July 22.
What's Next: Levi's raised its full-year net revenue growth guidance to 7.0% to 7.5% from 5.5% to 6.5% previously. It now expects adjusted earnings of $1.46 to $1.50 per share, including an approximate 4 cents per share headwind from a higher tax rate.
-- Janet H. Cho
SEC's Proposal to Stop Quarterly Earnings Sparks a Backlash
Investors and public commentators aren't on board with the Securities and Exchange Commission's plan to allow public companies to issue earnings reports twice instead of four times a year. The watchdog is polling opinions on the proposal, which it sees as a way to boost regulatory flexibility.
-- The SEC collected comments on its semiannual reporting proposal through
Monday, but as of midday Wednesday only a couple of responses submitted
that day were publicly available.
-- But the submissions the SEC has posted demonstrate strong opposition to
the proposal, according to an analysis by Tzachi Zach, a professor of
accounting and management information systems at Ohio State University.
-- Nonprofit Wall Street reform group Better Markets has called the plan a
"slap in the face to investors." Investing website Motley Fool and Reddit
group Wall Street Bets are also opposed to the proposal, although the
American Bankers Association and oil major Exxon Mobil support it.
-- Zach has created an artificial-intelligence-powered tracking website
analyzing the comments the SEC has posted and evaluating their sentiment.
As of midday Wednesday, the tracker had looked through 8,080 original
comments, finding that 7,994, or 99%, opposed the semiannual reporting
proposal.
(MORE TO FOLLOW) Dow Jones Newswires
July 09, 2026 06:32 ET (10:32 GMT)
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