01 Stock Market
U.S. stocks fell in choppy trading on Thursday as hopes dimmed for a quick end to the Iran war, while investors grappled with a mixed bag of earnings reports as concerns resurfaced about AI-driven disruption across the software sector.
Equities had been holding near unchanged after Iran tightened control over the Strait of Hormuz. Tehran released footage of its commandos storming a huge cargo ship they claimed to have seized, while demanding the U.S. lift its naval blockade on Iranian ports.
The SOX, officially called the PHLX Semiconductor Sector Index, includes the 30 largest chip stocks traded in the U.S. Through Thursday's close, it has risen for 17 consecutive trading sessions. That's the longest winning streak in the 32-year history of the index. Over those 17 days, the index surged 41.1%.
Chip leaders and high-beta names posted the widest moves. Tesla (TSLA) fell 3.56% at $373.72 after outlining heftier capital-spending plans, while NVIDIA (NVDA) declined 1.41% at $199.64 despite fresh collaboration headlines. Leveraged semiconductor ETF SOXL jumped 6.75% at $112.77, contrasting with the bearish SOXS, which fell 6.55% at $15.70. Software heavyweight Microsoft (MSFT) dropped 3.97% at $415.75, and database specialist Palantir (PLTR) slipped 7.24% at $141.57. Meanwhile, chipmaker Intel (INTC) rose 2.31% at $66.78 on upbeat guidance, and Advanced Micro Devices (AMD) inched up 0.62% at $305.33. Among niche movers, Oklo (OKLO) gained 5.59% at $76.46 on new energy-tech alliances, whereas workflow platform ServiceNow (NOW) plunged 17.75% at $84.78 on sales-delay worries.
The day also featured sharp reversals in speculative corners. Car-rental firm Avis Budget (CAR) tumbled 48.38% at $229.14 as a recent short squeeze unwound. Semiconductor designer Marvell Technology (MRVL) climbed 5.24% at $165.56, while the triple-weighted tech ETF TQQQ fell 1.64% at $59.22. Apple’s move was muted, with AAPL up 0.10% at $273.43. The mixed action underscored investors’ shifting focus toward company-specific catalysts rather than broad macro themes.
02 Other Markets
U.S. 10-year Treasury yield rose by 0.00%, latest at 4.32%.
USD/CNH rose 0.05%, at 6.87; USD/HKD rose 0.00%, at 7.83.
U.S. Dollar Index rose 0.02%, at 98.82.
WTI crude futures rose 1.14%, at 96.94 USD/bbl; COMEX gold futures fell 0.29%, at 4,710.50 USD/oz.
03 Top News
Intel Forecasts Second-Quarter Revenue Above Estimates, Shares Jump 20%
Intel forecast second-quarter revenue above Wall Street expectations on Thursday, underscoring booming demand for the company's server processors used for artificial intelligence in data centers.
Shares of Intel surged 20% in extended trading, adding $64 billion to its market value and extending its 81% rebound so far this year. Nasdaq futures rose 0.3%, showing traders expect the tech-heavy index to rise in Friday's session.
SpaceX Refinanced Debt with Stopgap $20 Billion Loan Before IPO Filing
Elon Musk's SpaceX took out a $20 billion bridge loan last month to refinance much of its existing debt ahead of its blockbuster U.S. initial public offering, according to a regulatory filing.
The borrowing, revealed for the first time in excerpts of its regulatory filings that were reviewed by Reuters, came from a syndicate of lenders which were not identified. Under the terms of the loan, SpaceX could be forced to use proceeds from its IPO to repay it, if it is not repaid with other funding sources within six months of the offering.
Meta Will Cut 10% of Workforce as Company Pushes Deeper into AI
Meta plans to lay off 10% of its workforce, about 8,000 employees, as it continues ramping up investments in artificial intelligence.
The cuts will begin May 20, and the company is scrapping plans to hire people for 6,000 open roles, according to a Thursday memo to employees. Bloomberg was first to report on the layoffs.
Meta’s latest round of cuts follows several smaller job reductions that the company said was necessary to to improve efficiency while focusing its efforts on generative AI, where it’s lagged OpenAI, Google and Anthropic.
Sources: Reuters, Dow Jones, Tiger Newspress, public market data
Disclaimer: This content is for reference only and does not constitute investment advice.
