Market Overview
On Tuesday, U.S. equity markets closed in the red. The S&P 500 slipped 0.5% to finish at 7,501.05 points, the Dow Jones Industrial Average fell 0.3% to 52,924.56, and the Nasdaq Composite dropped 1.2% to 25,818.69. The Nasdaq‑100 (NDX) was down 1.8%, and the Philadelphia Semiconductor Index lost 4.7%. Within the broader S&P 500 technology sector, stocks fell 1.6%.
Technology Sector Impact
The decline was led by a pull‑back in the artificial‑intelligence trade after Samsung Electronics reported its Q2 guidance. Samsung projected consolidated operating profit of about 89.4 trillion won (≈ $59.01 billion) on consolidated sales of roughly 171 trillion won, a 19‑fold year‑on‑year increase. Despite the record‑breaking profit forecast, Samsung’s shares closed nearly 7% lower, pulling SK Hynix down more than 6% and dragging the KOSPI index down almost 5%.
Memory and chip makers dominated the losers on the Nasdaq, with Intel, Western Digital, Marvell and Sandisk posting sizable percentage declines. The Philadelphia Semiconductor Index’s 4.7% drop reflected the broader weakness in chip‑related equities.
Oil Market Reaction
Geopolitical risk re‑emerged after the U.S. Treasury Department revoked a general license for the sale of Iranian crude oil, a response to fresh attacks on three oil tankers in and around the Strait of Hormuz. Two vessels were struck by unknown projectiles and a third by a drone; no casualties were reported. Qatar identified the Al‑Rekayyat as one of the targeted ships, while Saudi Arabia named the tanker Vijian. The attacks prompted Brent crude futures (September contract) to rise 5.2% to $75.76 a barrel, a level near pre‑war prices.
NATO Summit Highlights
The NATO Summit Defense Industry Forum in Ankara announced a $40 billion commitment to counter‑drone capabilities over the next five years, new co‑production initiatives, and a procurement plan for up to five Triton aircraft from Northrop Grumman. President Donald Trump attended, meeting Turkish President Recep Tayyip Erdoğan. Trump criticized NATO for its perceived lack of support during the Iran campaign and suggested possible U.S. troop drawdowns in Europe. He also floated the idea of selling Lockheed Martin F‑35 fighters to Turkey, despite a 2019 U.S. congressional ban linked to Turkey’s acquisition of the Russian S‑400 system.
Notable Movers
SpaceX officially entered the Nasdaq‑100, but its class A shares fell about 7% on the first trading day. The listing triggered a wave of analyst rating initiations from Bank of America, Citi, Deutsche Bank and Goldman Sachs. Rivian’s stock slumped more than 18% after the company announced a share offering, despite posting strong preliminary quarterly results.
Index and Symbol Performance Snapshot
- S&P 500: –0.5% to 7,501.05
- Nasdaq Composite: –1.2% to 25,818.69
- Nasdaq‑100 (NDX): –1.8%
- Dow Jones: –0.3% to 52,924.56
- Intel (INTC): –9.53%
- SanDisk (SNDK): –7.26%
- Marvell (MRVL): –7.45%
- Western Digital (WDC): –7.81%
- Brent crude (LCO): +5.2% to $75.76
- Korea’s KOSPI: –5% (approx.)