TradingKey Daily Market Briefing: Oil Prices Rise Above $90, AI Semiconductors Continue to Face Pressure, Nvidia, TSMC, AMD Fall Collectively

Tracking Market Trends

TradingKey - On July 17, Eastern Time, the three major U.S. stock indexes closed lower collectively and recorded weekly losses. The sell-off in the AI and semiconductor sectors continued to spread, and coupled with the further escalation of the U.S.-Iran conflict before the weekend, market risk appetite cooled significantly. Although some U.S. economic data still showed resilience, investor concerns over overvalued AI trades, rising oil prices driving up inflation, and a hawkish turn in Fed policy continued to weigh on U.S. stock performance.

At the close, the Dow Jones Industrial Average fell 0.77% to 52,151.22 points; the S&P 500 Index declined 1.01% to 7,457.69 points; and the Nasdaq Composite Index dropped 1.40% to 25,520.24 points.

In terms of sectors, semiconductors remained the market's biggest drag. The Philadelphia Semiconductor Index fell 1.63%, slipping into technical bear market territory, indicating that profit-taking in AI hardware trades has yet to end. In individual stocks, Nvidia ( NVDA) fell 2.28%, Micron Technology ( MU) fell 0.47%, AMD ( AMD) fell 1.17%, Intel ( INTC) fell 2.10%, SanDisk ( SNDK) fell 3.93%, TSMC ADR ( TSM) fell 2.89%.

In commodities, crude oil became the focus of the market. On July 17, WTI ( USOIL) crude oil closed up at $81.78 per barrel, and Brent ( UKOIL) crude oil closed up at $88.27, both hitting highs of more than a month. Entering early Asian trading on July 20, affected by the further escalation of the U.S.-Iran conflict over the weekend, WTI briefly rose above $84, while Brent crude broke above $90. Gold ( XAUUSD) rebounded last Friday, with its closing price holding steady above $4,000 to end at $4,016.65, but it remained under pressure overall.

Market News

The US-Iran conflict continued to escalate over the weekend. The U.S. Central Command stated that U.S. forces have launched strikes against Iranian targets for several consecutive nights, aiming to weaken Iran's capability to threaten commercial shipping in the Strait of Hormuz. Meanwhile, the market is also focusing on the risk that Iran could disrupt the Bab el-Mandeb Strait, the gateway to the Red Sea, through the Houthis.

Technology earnings this week will be a key test for U.S. stocks. Alphabet ( GOOGL ), Tesla ( TSLA ), Intel, and other companies will successively release their financial results, with Alphabet and Tesla drawing the most market attention. As the Nasdaq and the semiconductor sector experienced a significant pullback last week, this round of mega-cap tech earnings will not only impact individual stock performances but also influence market judgment regarding AI revenue monetization, cloud business growth, and corporate capex cycles. If the earnings and guidance fail to significantly beat expectations, high-valuation tech stocks could continue to face pressure.

U.S. consumer confidence rose to a five-month high, but rising oil prices pose new risks. University of Michigan data showed that the preliminary reading of the U.S. consumer confidence index for July rose to 54.4, higher than June's 49.5 and above market expectations, marking its highest level since February. However, as the U.S.-Iran conflict pushes oil and gasoline prices back up, the improvement in consumer confidence may face a test. If energy prices continue to rise, inflation expectations and consumer spending in the coming weeks could be dragged down again.

Meta reportedly in talks to lease computing power to Anthropic, as AI computing deals continue to heat up. Meta ( META) is in preliminary talks with Anthropic PBC, planning to lease AI computing power resources to the latter. If a partnership is finalized, the two-year contract could be valued at up to $10 billion.

Top 10 Most Active Stocks

The table below lists the ten most actively traded stocks in the market recently. Supported by massive trading volumes and excellent liquidity, these assets have become key benchmarks for tracking global market dynamics.