- Nasdaq composite slipped 0.2% after briefly dropping 9.3 per cent below its record set last month.
- Chipmaker shares continued to tumble worldwide, with Micron dropping 8.9 per cent, making it the heaviest weight on the S&P 500.
- Advanced Micro Devices and Applied Materials also saw significant declines, down 8.1 per cent and 7.8 per cent respectively.
- Global chip stocks faced even worse losses earlier in the day, with South Korea's Kospi index dropping 10.8 per cent due to sharp declines in SK Hynix and Samsung Electronics.
- Market concerns were likely spurred by the progress of China’s chipmaking equipment capabilities, threatening the competitive position of global chipmaking leaders.
- Oil prices eased, with Brent crude falling 4.4 per cent to settle at $82.08, which helped lower Treasury yields.
- The yield on the 10-year Treasury fell to 4.60 per cent from 4.65 per cent late Monday, as traders adjusted their expectations for interest rate hikes.
- Several major AI chip spenders are set to report their quarterly results this week, which could provide insights into their investment plans.
Nasdaq stocks slipped 0.2% on Tuesday, reflecting mixed results across Wall Street as chipmaker shares faced significant losses. The Dow Jones Industrial Average rose by 537 points, or 1%, while the Nasdaq briefly dipped 9.3% below its record set last month.23
The decline was primarily driven by Micron, which fell 8.9%, making it the heaviest weight on the S&P 500. Other notable losses included Advanced Micro Devices at 8.1% and Applied Materials at 7.8%. These drops contributed to a broader trend, as SK Hynix and Samsung Electronics also saw sharp declines, dragging South Korea's Kospi index down 10.8%.4
Investors are closely watching upcoming quarterly results from major AI chip and data center spenders, which could provide insights into future investments. Meanwhile, in the oil market, the price for a barrel of Brent crude fell 4.4% to settle at $82.08, influencing traders' expectations regarding potential interest rate hikes by the Federal Reserve following its latest meeting.
“The Dow Jones Industrial Average rose 537 points, or 1%, while the S&P 500 added 0.2%, masking significant volatility beneath the surface. Concerns over China's advancements in chipmaking capabilities have spooked investors, leading to sharp declines in major chip stocks like Micron, which dropped 8.9%.”
BNN Bloomberg
