Market
July 7, U.S. stocks opened on a mixed note: the Dow Jones Industrial Average gained 0.3% to 53,229, while the S&P 500 dipped 0.1% to 7,529 and the Nasdaq Composite fell 0.5% to 25,981. Investors weighed a steep selloff in semiconductors against resilience in several megacap software and internet names, with Treasury yields ticking higher ahead of this afternoon’s FOMC minutes.
Direxion Daily Semiconductors Bull 3x Shares sinks 13.95% as traders flee leveraged chip exposure; Intel tumbles 6.51% on fresh margin-pressure warnings; Advanced Micro Devices drops 6.45% after cautious PC-demand chatter; Western Digital loses 6.34% following a profit alert tied to flash pricing; Marvell Technology declines 5.95% amid networking-chip softness. On the upside, ServiceNow gains 2.9% after an upbeat outlook, and Microsoft adds 1.5% on new AI product launches.
Among broader movers, Direxion Daily Semiconductors Bear 3x Shares jumps 14.27% as hedging accelerates; Kingsoft Cloud surges 5.48% on a major AI infrastructure contract; Amazon.com rises 1.11% after a strong Prime Day preview; Meta Platforms climbs 1.15% on ad-spend momentum; Apple gains 0.85% ahead of next week’s iPhone event. Conversely, United Microelectronics falls 5.87% and Taiwan Semiconductor Manufacturing drops 3.07% on renewed U.S. export-control concerns.
News
Micron Technology cuts fourth-quarter revenue forecast by $800 million, sending shares down 6.3%. Management cited weaker pricing for DRAM and NAND as cloud and smartphone customers pare back orders. The warning intensified a broad semiconductor selloff at the open.
Advanced Micro Devices downgraded by two brokers, shares slide 6.5%. Analysts flagged rising channel inventories and slower AI server orders, dampening sentiment toward the high-flyer after a strong first half of the year.
ServiceNow lifts full-year subscription revenue outlook, stock jumps 2.9%. The workflow-software leader pointed to robust enterprise demand for its AI-driven platform and stronger renewal rates.
Microsoft unveils new Copilot Enterprise AI suite, boosting stock 1.5%. The package integrates generative AI across Office, Azure and Dynamics, reinforcing the company’s lead in paid AI productivity tools.
Amazon.com reports record early Prime Day sales, up 12% year over year. Management said strong demand for consumer electronics and home goods is outpacing expectations, supporting the e-commerce giant’s retail segment.
Tesla Motors starts production of next-generation Model Y at its Texas Gigafactory. While the move bolsters volume targets, analysts warn that price cuts could pressure automotive margins in the second half.
Federal Reserve to release June FOMC minutes this afternoon, keeping markets on edge. Investors will parse the discussion for clues on the timing and magnitude of potential rate cuts amid moderating inflation data.
Taiwan Semiconductor Manufacturing faces fresh U.S. export-control scrutiny, shares drop 3.1%. Reports suggest Washington may tighten restrictions on advanced chip-making equipment headed to overseas fabs, stoking supply-chain worries.
Kingsoft Cloud secures $500 million AI infrastructure contract with a leading Chinese automaker. The multi-year deal for cloud and GPU capacity sparked a 5.5% rally in the U.S.-listed ADR.
Direxion Daily Semiconductors Bear 3x Shares surges 14.3% as traders hedge chip exposure. The leveraged ETF saw volume triple its 30-day average, reflecting heightened demand for downside protection in the sector.
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