The S&P 500 achieved its 11th winning week in 12 despite Federal Reserve signals of potential interest rate hikes. Positive developments in U.S.-Iran relations and a surge in chipmaker stocks, particularly Intel, fueled market gains. Oil prices dropped significantly following the U.S.-Iran MOU.
US stocks traded near record levels Tuesday, with the Dow Jones Industrial Average hitting an intraday all-time high. Falling oil prices and optimism over a US-Iran peace deal boosted investor sentiment, while SpaceX shares rallied significantly.
China's Supreme People's Court upheld a ban on Infineon Technologies selling GaN products, following a patent dispute with domestic rival Innoscience. The ruling caused Chinese semiconductor stocks to surge.
Market watchers eye Trump's strong words on Iran, SpaceX's IPO allocations, and Oracle's earnings. Chip stocks show strength, with Intel, Micron, and AMD seeing upgrades, while Super Micro Computer plans significant equity financing amid AI server demand.
South Korea's KOSPI index saw a dramatic 48-hour swing, falling 8.29% then rebounding 8.18%, driven by AI chip demand and sensitivity to US Federal Reserve policy. The concentration in chipmakers like Samsung and SK Hynix amplified the volatility.
The US added 172,000 jobs in May with an unchanged unemployment rate of 4.3%, indicating a resilient labor market. Despite this, US stocks fell sharply due to a sell-off in AI chip stocks, with the Nasdaq down 4%.
Markets anticipate a lower open, with chip stocks like Broadcom leading declines. Investors also watch Middle East tensions. Major IPOs from Quantinuum and potential offerings from Anthropic, SpaceX, and OpenAI are creating fundraising concerns.
Asian markets, including China and Hong Kong, fell on Thursday due to escalating Middle East tensions. However, Chinese chip manufacturers saw gains on expectations of domestic breakthroughs. The Yuan saw a slight increase as the dollar index corrected.
Asian markets, including China and Hong Kong, fell on Thursday due to escalating Middle East tensions. However, Chinese chip manufacturers saw gains on expectations of domestic breakthroughs. The Yuan saw a slight increase.
European stock markets followed Asian gains, boosted by chip manufacturers after positive Nvidia results. Investors remain cautious due to US-Iran tensions and potential Middle East energy flow disruptions impacting inflation. Oil prices rose, while gas prices declined.
Asian and Pacific markets saw a positive trend, driven by a rebound in chip manufacturers' stocks following Nvidia's strong results. However, unresolved issues in US-Iran negotiations prompted investor caution. Japan's Nikkei index surged 2.6%, nearing historic highs, as inflation fell to 1.4% in April.
GigaDevice and Biwin Storage shares surged following CXMT's record Q1 revenue and profit, driven by rising DRAM prices and expanding sales volumes. CXMT forecasts continued strong performance for the first half of 2026.
The recent rally has shown a broadening of the AI trade beyond chipmaking giant Nvidia.
Chip stocks dropped due to investor risk-off mode following a hotter-than-expected consumer inflation measure, after a recent rally broadened the AI trade beyond Nvidia.
The immediate impulse might be to jump in the chip rally. If you're in that camp, a more measured approach might be to use options and risk less capital.
Memory chip stocks Micron and Sandisk surged on Monday, continuing their extraordinary runs, after Melius Research analyst Ben Reitzes upgraded Micron to buy with a 41% upside target, noting demand could remain high through decade's end. Micron is up 550% over the past year and approaching $600 billion market cap, while Sandisk has gained 3,000% and hit $157 billion market cap. The global shortage of HBM memory for AI data centers has created a general-purpose DRAM shortage causing prices to skyrocket.
Jim Cramer's Charitable Trust sold 25 shares of Broadcom at $418.57, reducing its AVGO position to 365 shares and lowering portfolio weighting to 4% from 4.30%. This marks the third Broadcom trim in two weeks as semiconductor stocks rally, with the SOX index extending its streak to 18 straight sessions. The trust realizes a 375% gain on stock purchased in September 2023, with cash to be redeployed into out-of-favor stocks.
