Mixed day for global stocks but oil prices fall along with chip shares
NEW YORK: Wall Street stocks mostly rose Tuesday (Jul 28) behind solid earnings and a pullback in oil prices, offsetting weakness in chip shares and in Asian equity markets.
Micron, AMD and Sandisk were among the semiconductor names swept up in the latest round of selling as investors fret over the sector’s lofty valuations and worry about rising competition from Chinese firms.
While the Nasdaq edged lower, both the Dow and S&P 500 advanced, lifted by strong results from Boeing, Coca-Cola and others.
Weakness in chip companies also weighed on Asian markets after The Information tech news outlet reported that China’s Shanghai Yuliangsheng had started mass production of a chipmaking technology long dominated by Dutch firm ASML.
Seoul-listed SK hynix sank 14.7 per cent and Samsung more than 13 per cent. Both firms have shed nearly 50 per cent of their market value since hitting all-time highs last month.
Tokyo’s Nikkei tanked four per cent as Kioxia, Advantest and Tokyo Electron shares tumbled.
Taipei fell more than four per cent as market heavyweight TSMC took a hit.
The Nasdaq spent much of the morning deeply negative but gradually cut losses, finishing down just 0.2 per cent.
US equity markets took solace from a further drop in oil prices after US President Donald Trump signalled optimism about a deal to end Middle East hostilities. Brent oil futures fell 4.8 per cent to US$84.09 a barrel.
Markets are shifting focus to the US Federal Reserve, which will conclude a two-day meeting Wednesday with a monetary policy decision.
