US Stocks Close: Three Major Indexes Edge Lower as Nasdaq Snaps Two-Day Gain; Memory Stocks Buck Trend as SanDisk Extends Gain by 7%

TradingKey - The S&P 500 Index pulled back slightly after hitting a new high yesterday, with all three major stock indexes declining slightly. Memory stocks bucked the trend to gain, while some optical communication stocks moved higher.

At the close, the Dow Jones Industrial Average fell 0.20% to 53,732.41 points; the Nasdaq Composite Index dropped 0.28% to 26,729.16 points; and the S&P 500 Index slipped 0.17% to 7,785.76 points.

Tech Stock Performance

SanDisk (SNDK) extended its gains by 7.39% to close at $1,641.11.

Goldman Sachs noted that SanDisk's FY28-30 long-term guidance released at its Investor Day—with an 80% gross margin and a 75% operating margin—far exceeded expectations; the company committed to repurchasing shares with 100% of excess free cash flow, with $15.5 billion remaining in buyback authorization. Long-term customer agreements (NBM) have covered over $94 billion in contract value, providing earnings visibility. High-bandwidth flash (HBF) memory technology is expected to enter the AI inference market, representing an additional upside option.

Among mega-cap tech stocks, Tesla (TSLA) rose 0.68% and Apple (AAPL) gained 0.22%; on the downside, Broadcom (AVGO) fell 5.93%, TSMC (TSM) dropped 0.96%, Amazon (AMZN) fell 0.94%, SpaceX (SPCX) dropped 0.91%, Meta Platforms (META) fell 0.86%, Microsoft (MSFT) fell 0.30%, Google (GOOGL) fell 0.13%, and Nvidia (NVDA) dipped 0.06%.

[Source: FutuBull]

The Philadelphia Semiconductor Index fell 0.31% to 12,417.05 points. Among its 30 constituents, 15 advanced and 15 declined.

Among memory stocks, SanDisk (SNDK) rose 7.39%, Seagate Technology (STX) gained 5.65%, Western Digital (WDC) rose 4.41%, Micron Technology (MU) gained 2.30%, and SK Hynix (SKHY) rose 0.40%.

Among optical communication stocks, Applied Optoelectronics (AAOI) surged 15.52%, AXT Inc (AXTI) rose 5.41%, Lumentum (LITE) gained 5.19%, and Corning (GLW) advanced 4.66%.

Company News

Natural Gas Pipeline Project for Oracle Data Center Postponed to February 2027

A key supporting natural gas pipeline project for Oracle's Project Jupiter data center under construction in New Mexico has encountered a delay. Energy Transfer's Transwestern Pipeline disclosed in a regulatory filing that the operational date for the Green Chile Project pipeline has been postponed from the original target of August 15, 2026, to February 1, 2027, a delay of nearly six months.

SoftBank Significantly Cuts TSMC Stake in Q2, Cashing Out Nearly $270 Million

SoftBank Group disclosed in its latest SEC regulatory filing that it initiated a new position in Capital One Financial Corp. (Capital One) in the second quarter. In the quarter ended June 30, SoftBank bought 276,811 shares of Capital One, with a quarter-end position value of approximately $55.5 million. In addition, SoftBank reduced its TSMC holdings by 71.5%, selling 1.4 million TSMC shares in the second quarter and cashing out approximately $269.8 million. During the quarter, SoftBank also modestly increased its stake in Life360 by 10,718 shares, a company providing GPS location-sharing services, with the position valued at roughly $488,500.

SpaceX Completes Acquisition of AI Software Cursor

SpaceX has officially completed its acquisition of AI programming startup Cursor in a deal valued at $60 billion, making it one of the largest M&A transactions in tech history and marking a new stage in Musk's AI rivalry with Anthropic and OpenAI. Following the acquisition, Cursor's co-founders will join the ranks of billionaires, and their team will gain access to SpaceX's vast resources of advanced AI chips.

Industry & Macro News

Fed's Goolsbee: More Evidence Still Needed to Confirm Inflation Decline

Chicago Fed President Goolsbee stated that recent CPI data has been encouraging, but inflation in May and June remained on the higher side. He noted that only if the momentum from June continues over the next three to four months will there be confidence that prices are steadily returning to the 2% target. He supported keeping interest rates unchanged in July, stating that inflation remains the primary concern while the economy and employment remain "largely stable." He warned that a continued decline in retail sales would raise concerns, as consumer spending is a key pillar of the US economy. In addition, he expressed concern over the recent slowdown in productivity growth, noting that if AI-driven growth cannot be sustained, the narrative surrounding AI and monetary policy will need to be re-examined. As for whether to reduce the number of policy meetings, Goolsbee said he has no strong opinion and is willing to wait for recommendations from the working group.

US to Impose Tariffs on Imported Drones and Components

The White House issued a statement saying that US President Trump signed a proclamation that day to impose ad valorem tariffs ranging from 10% to 100% on imported drones and components, citing national security threats. The proclamation stipulates a 100% ad valorem tariff on highly sensitive drones of specific sizes or functions, as well as docking stations and certain key components for such drones. This category includes drones with a maximum takeoff weight exceeding 25 kilograms and drones with thermal imaging capabilities. In addition, a 25% ad valorem tariff will be imposed on certain smaller drones without specific functions and other drone components. The proclamation also specifies a 15% ad valorem tariff on drones and components from the European Union, Japan, Liechtenstein, South Korea, Switzerland, and other jurisdictions. Furthermore, a 10% ad valorem tariff will be imposed on drones from the UK, provided that their hardware, software, and technology are substantially derived from the aforementioned countries and regions, as well as the US. According to the provisions, the tariffs will take effect 21 days after signing. For non-highly sensitive drone components, the tariffs will take effect 180 days after signing.

BOJ Could Raise Rates as Early as September, Report Says

Foreign media cited three sources familiar with the Bank of Japan's policy thinking as saying that the BOJ could raise interest rates as early as September and is considering a more aggressive rate-hike path thereafter than the current pace of roughly two rate hikes per year. This move would reflect the BOJ's growing concern over price pressures caused by multiple factors, including the impact of the Middle East conflict, strong global artificial intelligence demand, and the continued weakening trend of the yen despite a rare joint currency market intervention by Japan and the United States last month. One of the sources stated, "An earlier rate hike is already in sight." This implies that the BOJ is very likely to raise rates at its next policy meeting on September 17–18. The source added, "The BOJ may also accelerate the pace of rate hikes." Another source expressed a similar view.