01 Stock Market
The U.S. major indexes closed as follows: Dow Jones up 0.02% at 52,508.27; S&P 500 up 0.38% at 7,543.59; NASDAQ up 0.90% at 26,107.01. A modest rise in the blue-chip Dow contrasted with a stronger advance for tech-heavy Nasdaq, while the broad S&P 500 hovered in between, reflecting a tug-of-war between surging semiconductor names and weakness in parts of the software complex.
Chipmakers rallied while select tech bellwethers slumped. Memory giant SK Hynix (SKHY) jumped 27.29% to $193.92 after upbeat analyst coverage, and leveraged fund SOXL climbed 6.83% to $176.66. Industry leader NVIDIA (NVDA) advanced 4.06% to $211.80, while fellow chip makers Micron Technology (MU) rose 4.92% to $983.12, Intel (INTC) gained 4.50% to $107.76 and Advanced Micro Devices (AMD) added 2.57% to $548.13. Conversely, IBM fell 25.21% to $217.07 after a disappointing revenue outlook, dragging software peers lower. Among high-volatility ETF moves, Direxion Daily MSCI South Korea Bull 3x Shares (KORU) jumped 14.83% to $481.34, while bearish chip fund SOXS declined 7.96% to $4.28.
Sector rotation favored hardware over software. Strength in AI-linked semiconductors and memory names offset pressure on legacy software providers, helping the NASDAQ outperform. Meanwhile, broad-based gains in select megacap growth stocks such as Alphabet (GOOG) up 1.90% at $357.33 and Meta Platforms (META) up 0.66% at $661.04 added support. In contrast, Apple (AAPL) slipped 0.77% to $314.86 amid a broker downgrade. Overall, market breadth improved within technology hardware and bank shares, cushioning the impact of IBM’s slide.
02 Other Markets
U.S. 10-year Treasury yield rose by 0.00%, latest at 4.58%. USD/CNH fell 0.06%, at 6.79; USD/HKD rose 0.0004%, at 7.84. U.S. Dollar Index was flat, changing 0.00% to close at 100.93. WTI crude futures rose 0.69%, at $79.22 USD/bbl; COMEX gold futures fell 0.37%, at $4,054.50 USD/oz.
03 Top News
1. IBM warned of lower-than-expected second-quarter revenue, citing a customer shift toward AI infrastructure. Management said spending has pivoted from traditional software to servers, storage and memory, delaying “numerous large deals.” Shares declined sharply, sparking a wider sell-off in software names.
2. Goldman Sachs posted a profit surge driven by record equities trading and robust dealmaking. Revenue from equities jumped 72%, while investment-banking fees rose 55% as “mega-deal” activity accelerated. The strong quarter lifted confidence despite broader market volatility.
3. Citigroup exceeded earnings forecasts on strength in trading and investment banking. Net income climbed 45%, and return on tangible common equity reached 13%, near the upper end of long-term targets. Management credited volatile markets and AI-related M&A for the performance.
4. Wells Fargo beat profit estimates as loan growth and trading revenues expanded. Net interest income rose 5% to $12.32 billion, aided by a 12% increase in average loans. Markets revenue jumped 24% after the lifting of its asset cap allowed greater balance-sheet deployment.
5. AI startup Reflection secured a computing deal worth over $1 billion with Nebius to access NVIDIA chips. The agreement follows an earlier capacity pact with SpaceX, underscoring intense competition among AI firms for scarce data-center resources. Nebius shares gained in pre-market trade.
6. U.S. President Donald Trump abandoned a proposed 20% fee on ships transiting the Strait of Hormuz, opting for investment agreements with Gulf states instead. The policy reversal followed discussions with Middle East leaders and eased concerns over global shipping costs. A partial blockade on Iranian shipping remains in place.
7. Cooling U.S. consumer inflation tempered expectations for an immediate Federal Reserve rate hike. Core CPI was unchanged month-on-month, leading futures to price only a 10% chance of a July increase. Markets now see a higher likelihood of action later in the year.
8. Samsung Electronics denied reports that it is considering a U.S. American Depositary Receipt listing. The company stated it is “not reviewing” an ADR issuance despite speculation following SK Hynix’s successful U.S. debut. The clarification seeks to quell investor uncertainty over potential capital-raising plans.
9. SK Hynix American depositary receipts rallied on their first sessions, trading at a significant premium to Seoul-listed shares. Analysts highlighted attractive valuation versus U.S. peers amid the memory-chip boom. Retail enthusiasm and leverage ETFs contributed to heightened volatility.
10. Major U.S. bank stocks advanced after a series of strong quarterly reports. Goldman Sachs, JPMorgan, Morgan Stanley and Bank of America all registered notable share gains as record trading and resurgent M&A boosted profits. The collective performance provided a bright spot for financials amid macro uncertainties.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data Disclaimer: This content is for reference only and does not constitute investment advice.