U.S. chip stocks fell below the bull-bear dividing line
On Friday (July 17) local time, AI technology stocks continued to correct, dampening market sentiment, and the three major U.S. stock indexes closed down across the board. As of the close, the Dow fell 0.77% to 52,146.42 points, the S&P 500 fell 1.01% to 7,457.69 points, and the Nasdaq fell 1.4% to 25,520.24 points. This week, the Dow fell 0.93%, the S&P 500 fell 1.55%, and the Nasdaq fell 2.9%. The Philadelphia Semiconductor Index retraced more than 20% on the 17th from its all-time high on June 22, which means that the index has officially entered the bear market zone.
On Friday (July 17) local time, AI technology stocks continued to correct, dampening market sentiment, and the three major U.S. stock indexes closed down across the board. As of the close, the Dow fell 0.77% to 52,146.42 points, the S&P 500 fell 1.01% to 7,457.69 points, and the Nasdaq fell 1.4% to 25,520.24 points. This week, the Dow fell 0.93%, the S&P 500 fell 1.55%, and the Nasdaq fell 2.9%. The Philadelphia Semiconductor Index retraced more than 20% on the 17th from its all-time high on June 22, which means that the index has officially entered the bear market zone. The index fell 10% this week, its biggest weekly drop since April 2025. At present, the market is re-evaluating the investment boom in the field of AI. "The focus now turns to financial reports, which will determine whether this week's semiconductor-induced correction is a temporary adjustment or the beginning of a longer-term adjustment." Matt Simpson, senior strategist at Gain Capital Group, told reporters that the current moment is very important. Nasdaq is entering the critical earnings season, which will determine whether the recent artificial intelligence-led rise can be sustained. In addition, due to the continued military conflict in the Middle East, international crude oil futures prices fluctuated higher during the session on the 17th, with an increase of more than 4% at the close. The main contract price of New York crude oil futures reached US$80 per barrel for the first time in the past month. All three major U.S. stock indexes closed lower Chip stocks become the main selling force On Friday (July 17) local time, all three major U.S. stock indexes closed down. As of the close, the Dow fell 0.77% to 52,146.42 points, the S&P 500 fell 1.01% to 7,457.69 points, and the Nasdaq fell 1.4% to 25,520.24 points. In terms of sectors, large technology stocks generally fell: Meta fell more than 2%, Tesla fell more than 2%, Nvidia fell more than 2%, Google fell more than 2%, Microsoft fell nearly 2%, Amazon fell more than 1%, and Apple rose 0.14%. Chip stocks became the main selling force. The Philadelphia Semiconductor Index fell by 1.63%, Applied Materials fell by more than 5%, Ketian Semiconductor fell by more than 3%, TSMC fell by nearly 3%, ASML fell by more than 2%, Intel fell by 2%, and AMD Semiconductor fell by more than 1%. This week, the Philadelphia Semiconductor Index fell 10%, its largest weekly decline since April 2025. "The collective correction of global chip stocks has offset the positive second-quarter financial reports and dragged down market sentiment." Jerry Chen, a senior analyst at Jiasheng Group, told reporters that driven by profit-taking sentiment and other factors, the U.S. semiconductor sector has retraced 20% since its historical high in June, and memory chips have plummeted 35%. Moreover, as the weight of the semiconductor sector in U.S. stocks is increasing, its impact on the three major indexes, especially the Nasdaq, has become increasingly obvious. Recently, voices questioning the AI growth narrative have emerged one after another in the global market. In this regard, the latest analysis by two core trading directors of Goldman Sachs' EMEA equity business pointed out that hyper-scale cloud computing companies such as Microsoft, Amazon, Alphabet, and Meta are betting on AI infrastructure at a rate that exceeds their own operating cash flow. Whether this unprecedented wave of capital can bring sufficient returns has become the market's most critical unresolved question. Matt Simpson, senior strategist at Gain Capital Group, said that the current moment is very important. Nasdaq is entering the critical earnings season, which will determine whether the recent artificial intelligence-led rise can be sustained. "The focus now turns to earnings reports, which will determine whether this week's semiconductor-induced correction is a temporary adjustment or the beginning of a longer-term adjustment." Matt Simpson said that investors will seek confirmation that demand from the artificial intelligence supply chain remains strong, from hyperscale companies investing in data centers to semiconductor design companies and equipment manufacturers. Capital spending plans, cloud computing growth, AI monetization and future guidance will be scrutinized for signs that the pace of investment is starting to slow.
According to the news, as the latest example of a company benefiting from the "AI craze" launching an employee incentive policy, lithography machine manufacturer ASML will issue equity incentives equivalent to 20,000 euros to employees around the world. It is reported that ASML announced this policy through an internal email to all employees, and the company plans to grant share awards on January 1 next year. The bonus comes with conditions: Employees must stay at the company until at least January 1, 2030, before their shares can vest and be sold. ASML has approximately 44,500 employees worldwide, and this one-time incentive is worth nearly 900 million euros. Most Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index falling 1.81%. In terms of popular Chinese concept stocks, Kingsoft Cloud fell by more than 5%, Bilibili fell by more than 5%, Baidu Group fell by nearly 5%, GDS fell by nearly 5%, Pony.ai fell by more than 4%, Hesai Technology fell by more than 4%, Century Internet fell by more than 4%, and Li Auto fell by more than 3%. In terms of gains, JinkoSolar rose by more than 3%, and Daqo New Energy rose by nearly 2%. International oil prices rose by more than 4% on the 17th. According to Xinhua News Agency, due to the ongoing military conflict in the Middle East, international crude oil futures prices fluctuated higher during the session on the 17th, with an increase of more than 4% at the close. The main contract price of New York crude oil futures reached US$80 per barrel for the first time in the past month. As of the close of the day, the price of light crude oil futures for August delivery on the New York Mercantile Exchange rose by US$3.54 to close at US$82.49 per barrel, an increase of 4.48%; the price of London Brent crude oil futures for September delivery rose by US$3.87 to close at US$88.10 per barrel, an increase of 4.59%. U.S. consumer confidence unexpectedly rises to five-month high in July A preliminary survey released by the University of Michigan on Friday showed that the consumer confidence index rose to 54.4 in July from 49.5 in June, higher than economists' expectations and a five-month high. Consumers expect the annual price inflation rate in the next year to be 4.2%, down from 4.6% in the June survey; the average annual inflation rate in the next five to ten years is expected to be 3.3%, the same as in June. Joanne Hsu, the head of the survey, said in a statement: "Consumers remain concerned that inflationary pressures may intensify in the future. More and more respondents believe that it is more cost-effective to buy goods now to avoid future price increases." Households' perceptions of their own financial situation and the overall economic situation have improved, the survey showed. An index of durable goods purchasing conditions rose to its highest level since October last year. Regarding U.S. monetary policy, Federal Reserve officials have made the latest statements. Federal Reserve Vice Chairman Philip Jefferson said that if inflation does not cool down soon, it should consider raising interest rates, but he also said that the current state of monetary policy is good. The Fed's current interest rate settings should continue to support the labor market while keeping inflation down. Cleveland Fed President Hammack said that while consumer spending remains solid and the unemployment rate remains low, continued high inflation is her current bigger concern. She also pointed out that for the first time since taking office, she heard businesses calling for curbing inflation, and for the first time she heard consumers struggling to make ends meet express despair. (
According to the news, as the latest example of a company benefiting from the "AI craze" launching an employee incentive policy, lithography machine manufacturer ASML will issue equity incentives equivalent to 20,000 euros to employees around the world. It is reported that ASML announced this policy through an internal email to all employees, and the company plans to grant share awards on January 1 next year. The bonus comes with conditions: Employees must stay at the company until at least January 1, 2030, before their shares can vest and be sold. ASML has approximately 44,500 employees worldwide, and this one-time incentive is worth nearly 900 million euros. Most Chinese concept stocks fell, with the Nasdaq China Golden Dragon Index falling 1.81%. In terms of popular Chinese concept stocks, Kingsoft Cloud fell by more than 5%, Bilibili fell by more than 5%, Baidu Group fell by nearly 5%, GDS fell by nearly 5%, Pony.ai fell by more than 4%, Hesai Technology fell by more than 4%, Century Internet fell by more than 4%, and Li Auto fell by more than 3%. In terms of gains, JinkoSolar rose by more than 3%, and Daqo New Energy rose by nearly 2%. International oil prices rose by more than 4% on the 17th. According to Xinhua News Agency, due to the ongoing military conflict in the Middle East, international crude oil futures prices fluctuated higher during the session on the 17th, with an increase of more than 4% at the close. The main contract price of New York crude oil futures reached US$80 per barrel for the first time in the past month. As of the close of the day, the price of light crude oil futures for August delivery on the New York Mercantile Exchange rose by US$3.54 to close at US$82.49 per barrel, an increase of 4.48%; the price of London Brent crude oil futures for September delivery rose by US$3.87 to close at US$88.10 per barrel, an increase of 4.59%. U.S. consumer confidence unexpectedly rises to five-month high in July A preliminary survey released by the University of Michigan on Friday showed that the consumer confidence index rose to 54.4 in July from 49.5 in June, higher than economists' expectations and a five-month high. Consumers expect the annual price inflation rate in the next year to be 4.2%, down from 4.6% in the June survey; the average annual inflation rate in the next five to ten years is expected to be 3.3%, the same as in June. Joanne Hsu, the head of the survey, said in a statement: "Consumers remain concerned that inflationary pressures may intensify in the future. More and more respondents believe that it is more cost-effective to buy goods now to avoid future price increases." Households' perceptions of their own financial situation and the overall economic situation have improved, the survey showed. An index of durable goods purchasing conditions rose to its highest level since October last year. Regarding U.S. monetary policy, Federal Reserve officials have made the latest statements. Federal Reserve Vice Chairman Philip Jefferson said that if inflation does not cool down soon, it should consider raising interest rates, but he also said that the current state of monetary policy is good. The Fed's current interest rate settings should continue to support the labor market while keeping inflation down. Cleveland Fed President Hammack said that while consumer spending remains solid and the unemployment rate remains low, continued high inflation is her current bigger concern. She also pointed out that for the first time since taking office, she heard businesses calling for curbing inflation, and for the first time she heard consumers struggling to make ends meet express despair. (