The Table Turns: Five Sessions of Falling AI Semiconductors While Dow Climbs
![The Table Turns: Five Sessions of Falling AI Semiconductors While Dow Climbs](https://ussnsimg.moomoo.com/sns_client_feed/77777011/20240717/1721161187004-3fe5f058dd.png/big?area=999&is_public=true)
The market pulled back Wednesday, as AI and semiconductor stocks pulled back hard while slower-growing stocks on the Dow Jones led the index to a fresh closing and intraday high.
After 4 pm EST, the $S&P 500 Index (.SPX.US)$ was down 1.39%, while the $Nasdaq Composite Index (.IXIC.US)$ slumped 2.7%. The $Dow Jones Industrial Average (.DJI.US)$ fared better, rising 0.59%.
Overall 4400 equities advanced, while 7105 declined.
![The Table Turns: Five Sessions of Falling AI Semiconductors While Dow Climbs](https://ussnsimg.moomoo.com/sns_client_feed/77777011/20240718/1721249624784-7ccf4afa62.png/big?area=999&is_public=true)
MACRO
This week will be a light one for macroeconomic news, with many Federal Reserve speakers and Initial Jobless claims on Thursday.
Federal Reserve Gov. Christopher Waller said the central bank is "getting closer to the time when a cut" in interest rates is warranted, but he still wants more evidence that inflation is slowing before he's ready to move.
"I believe current data are consistent with achieving a soft landing, and I will be looking for data over the next couple months to buttress this view," Wall said in a speech in Kansas City. " So, while I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted."
Federal Reserve Governor Adriana D. Kugler said Tuesday she anticipates "it will be appropriate to begin easing monetary policy later this year" if economic conditions continue to evolve in a favorable manner with more rapid disinflation and employment softens while remaining resilient. She addressed the National Association for Business Economics Foundation in Washington.
"If the labor market cools too much and unemployment continues to increase and is driven by layoffs, I would see it as appropriate to cut rates sooner rather than later," Kugler said. "Alternatively, if incoming data do not provide confidence that inflation is moving sustainably toward 2 percent, it may be appropriate to hold rates steady for a little longer."
Federal Reserve President Jerome Powell spoke Monday, saying the Fed would likely lower rates before inflation to 2%.
SECTORS
Oil futures ended higher on Wednesday, tallying their first gain in four sessions, after official U.S. data revealed a third weekly drop in a row for commercial crude inventories.
![The Table Turns: Five Sessions of Falling AI Semiconductors While Dow Climbs](https://ussnsimg.moomoo.com/sns_client_feed/77777011/20240718/1721249609448-2907263ce3.png/big?area=999&is_public=true)
A week-to-week decline in implied gasoline demand reported by the Energy Information Administration, however, highlighted a reduction in fuel consumption during the summer season.
West Texas Intermediate crude for August delivery rose $2.09, or 2.6%, to settle at $82.85 a barrel on the New York Mercantile Exchange. Prices settled at their highest since July 5 after ending Tuesday at the lowest in more than three weeks, according to Dow Jones Market Data.
MOOVERS
$NVIDIA (NVDA.US)$ fell 6.6% after a Bloomberg report that President Biden considered punishing chipmakers if they kept trading chips to China. Within industries tracked by moomoo, Nvidia led the way for a major pullback in Semiconductors, and Semiconductor equipment fell hard, down 6.7% and 11%.
$Arm Holdings (ARM.US)$ fell 9.5%, $Advanced Micro Devices (AMD.US)$ fell 7.5%. $ASML Holding (ASML.US)$, a semiconductor lithography supply company posted upbeat earnings and guidance, but the news from Biden came at the wrong time, the stock fell 12%, and rounded out the trio at the lowest decliners on the Nasdaq 100.
$Intel (INTC.US)$, a U.S.-based chipmaker climbed 4% intraday, at one point the highest on the Dow Jones, sending the index to a new record before pulling back to a 0.35% gain.
$Taiwan Semiconductor (TSM.US)$ was not safe from the potshots, and fell 7.8% after comments from Presidential candidate Trump, who said Taiwan should pay for the military aid the U.S. provides. The firm is due to report earnings tomorrow alongside tech giant Netflix. Analysts tracked by YHahoo finance expect earnings of $1.4/share on revenue of $20B.
$GlobalFoundries (GFS.US)$, a NY-based semiconductor and foundry firm shot up 6.8%, the highest on the Nasdaq 100 at one point on the semiconductor news, as investors looked at U.S.-based alternatives.
$United Airlines (UAL.US)$ reported a rise in profit in the second quarter and said it is changing its domestic-capacity plans in the face of industry-wide challenges. The airline company on Wednesday posted a net profit of $1.32 billion, or $3.96 a share, compared with $1.08 billion, or $3.24 a share, for the same period a year earlier.
Word from the herd: Mooers, what are you watching?
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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