Nasdaq 100 loses 1% as semiconductors retreat – BigTech stocks and DJIA gain

Key takeaways

• Falling semiconductor stocks pressure Nasdaq 100 after Samsung earnings
• Dow Jones Industrial Average sets a new record high
• AI hyperscalers such as Meta Platforms, Amazon and Alphabet are advancing today

Nasdaq 100 futures are down 1.1% as volatility returns to the semiconductor sector. S&P 500 futures are slipping 0.2%, while Dow Jones futures are up nearly 0.2%. SpaceX is set to join the Nasdaq 100 today. A broad sell-off in chipmakers, including Taiwan Semiconductor, Nvidia, AMD, Micron, and Intel, is offsetting gains in software and the Magnificent Seven, with Meta Platforms and Alphabet leading the upside.

• The main source of pressure comes from Samsung’s earnings, which failed to meet elevated investor expectations despite a 19-fold increase in quarterly profit. Samsung shares are down nearly 9%, while Micron and Sandisk are also losing more than 5%.
• Investors are increasingly questioning the lofty valuations of semiconductor companies and whether the AI boom, along with hundreds of billions of dollars being invested in AI infrastructure, can continue generating strong returns.
• European equities are mixed, with the Stoxx 600 down 0.1% despite gains in 14 of its 20 sectors. Investors continue rotating into other parts of the technology sector.
• AI hyperscalers such as Amazon and Alphabet are advancing, while Microsoft is up 1.5% alongside the broader software sector.
• Global bond markets remain under pressure as investors increase bets on tighter monetary policy. The yield on the 10-year US Treasury has risen by 2 basis points to 4.49%.
• Brent crude is up 1% to $72.66 per barrel following renewed attacks on shipping near the Strait of Hormuz, highlighting persistent security risks to global energy supplies.

Source: xStation5 Stock market news

• Dow Jones reaches a new record while Nasdaq remains under pressure. The Dow Jones Industrial Average gained around 0.3% to a fresh all-time high. Meanwhile, the S&P 500 edged slightly lower and the Nasdaq fell about 0.5%, mainly due to weakness across semiconductor stocks.
• Rivian plunges after announcing a new share offering. Shares of the electric vehicle maker dropped more than 13% after the company announced a public offering of 75 million Class A shares. While the capital raise strengthens Rivian’s balance sheet, investors reacted negatively to the resulting shareholder dilution. The stock had rallied 19% last week and gained another 8% on Monday.
• Amazon plans a $25 billion bond offering. According to media reports, the company is preparing one of the largest corporate bond sales in recent years. Amazon shares are up about 1% as investors expect the proceeds to support continued investment in AI infrastructure and data centers.
• US trade deficit widens sharply in May. The deficit increased to $77.6 billion from a revised $54.6 billion in April, although the figure came in slightly below market expectations. Exports fell 3.2% while imports rose 3.3%, pointing to a significant deterioration in the US trade balance.
• DeepSeek is developing its own AI chip. The Chinese startup is reportedly designing an in-house inference chip used to generate responses from already-trained AI models. The project remains at an early stage but underscores the intensifying technological competition between China and the United States.
• Vertex acquires Crinetics in a $10 billion deal. Vertex agreed to pay $85 per share to acquire the developer of hormone-related therapies. Crinetics shares surged nearly 100%, while Vertex shares edged slightly lower. The acquisition is expected to strengthen Vertex’s position in innovative specialty medicines.
• JPMorgan raises its price target for Eli Lilly. The bank increased its target to $1,400 per share, implying roughly 17% upside from the latest close. Analysts expect another strong quarterly report driven by continued growth in Mounjaro and Zepbound sales, while maintaining Eli Lilly as one of their top pharmaceutical picks.
• First Solar gains after Deutsche Bank upgrade. Deutsche Bank upgraded the stock from Hold to Buy , citing an attractive valuation following recent declines and the potential for favorable changes in trade policy. Shares of the solar panel manufacturer are up around 3%.

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