Mixed day for global stocks but oil prices fall along with chip shares
A trader works on the floor of the New York Stock Exchange (NYSE) at the closing bell, in New York on Jul 24, 2026. (Photo: AFP/Angela Weiss)
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NEW YORK: Wall Street stocks mostly rose Tuesday (Jul 28) behind solid earnings and a pullback in oil prices, offsetting weakness in chip shares and in Asian equity markets.
Micron, AMD and Sandisk were among the semiconductor names swept up in the latest round of selling as investors fret over the sector’s lofty valuations and worry about rising competition from Chinese firms.
While the Nasdaq edged lower, both the Dow and S&P 500 advanced, lifted by strong results from Boeing, Coca-Cola and others.
Weakness in chip companies also weighed on Asian markets after The Information tech news outlet reported that China’s Shanghai Yuliangsheng had started mass production of a chipmaking technology long dominated by Dutch firm ASML.
Seoul-listed SK hynix sank 14.7 per cent and Samsung more than 13 per cent. Both firms have shed nearly 50 per cent of their market value since hitting all-time highs last month.
Tokyo’s Nikkei tanked four per cent as Kioxia, Advantest and Tokyo Electron shares tumbled.
Taipei fell more than four per cent as market heavyweight TSMC took a hit.
The Nasdaq spent much of the morning deeply negative but gradually cut losses, finishing down just 0.2 per cent.
US equity markets took solace from a further drop in oil prices after US President Donald Trump signalled optimism about a deal to end Middle East hostilities. Brent oil futures fell 4.8 per cent to US$84.09 a barrel.
Markets are shifting focus to the US Federal Reserve, which will conclude a two-day meeting Wednesday with a monetary policy decision.
Most investors expect the Fed to hold rates at 3.50-3.75 per cent for the fifth straight meeting, according to CME’s FedWatch monitoring tool – but bets on a rate-hike have been rising.
Consumer inflation eased to 3.5 per cent year-on-year last month but is expected to rise again on the back of seesawing oil prices from Trump’s war on Iran, which saw renewed fighting in recent weeks.
While the market expects the Federal Reserve to hold interest rates, the uncertainty around the outcome of the meeting is unusual. That is fueled by new Fed Chair Kevin Warsh’s refusal to publicly share his views on the economic outlook, part of his proposed reforms to reduce the amount of forward guidance the central bank offers.
“I don’t expect a rate hike, but I do expect dissents,” said Diane Swonk, chief economist at KPMG.
“We may have a new chairman, but the old guard is now worried about where the economy has moved since the beginning of the year.”
European stocks ended the day higher, supported by corporate earnings and lower oil prices.
Source: AFP/fs
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