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World Shares Mixed on Tech Decline 08/06 04:48
Shares were mixed Thursday in Europe and Asia and South Korea's Kospi
dropped more than 4% following declines for some Big Tech giants including
memory chipmaker SK Hynix.
BANGKOK (AP) -- Shares were mixed Thursday in Europe and Asia and South
Korea's Kospi dropped more than 4% following declines for some Big Tech giants
including memory chipmaker SK Hynix.
Oil prices held steady, with Brent crude trading near $79 a barrel.
Uncertainty about the direction of the U.S. war with Iran is still overhanging
markets despite hopes for a reopening of the Strait of Hormuz.
The future for the S&P 500 was up 0.1% while that for the Dow Jones
Industrial Average gained 0.3%.
Markets will get an update Friday on U.S. jobs with the monthly employment
report for July, and analysts say investors appear to be bracing for its
potential impact.
"Asia's chip selloff looks like a combination of profit-taking and risk
reduction ahead of Friday's nonfarm payroll report," Stephen Innes of SPI Asset
Management said in a commentary.
Strong corporate profits and expectations for more growth ahead generally
have been steering U.S. stocks higher. But Asian benchmarks have been hit by
bouts of selling of computer chipmakers and other companies related to the boom
in artificial intelligence.
SK Hynix plunged 10.4% after dropping 30% ahead of the open in Seoul, while
its larger rival Samsung Electronics lost 6.3% in the latest rout for shares
linked to the AI boom.
The Kospi lost 4.6% to 6,296.38.
In early European trading, Germany's DAX picked up 0.3% to 26,194.59, while
the CAC 40 in Paris surged 0.7% to 8,726.92. Britain's FTSE 100 added 0.3% to
10,923.34.
Japan's Nikkei 225 lost 0.9% to 65,683.26.
In Hong Kong, the Hang Seng declined 1.5% to 25,530.28, while the Shanghai
Composite index climbed 0.6% to 3,900.35.
Australia's S&P/ASX 200 gained 0.5% to 9,271.60.
U.S. President Donald Trump said a deal to reopen the Strait of Hormuz was
coming soon. But there have been many stops and starts during the
five-month-old conflict that has stifled the global supply of oil and rattled
energy markets.
The price of Brent crude, the international standard, edged less than 0.1%
higher to $79.50 a barrel. Oil prices have been swinging for months and were as
high as $102 per barrel at one point during the conflict, jolting already
stubbornly high inflation. Higher oil prices pushed gasoline prices higher and
increased shipping costs for a wide range of products.
U.S. benchmark crude oil was almost unchanged at $75.21 a barrel.
On Wednesday, the S&P 500 slipped 0.2% from an all-time high and the Dow
industrials rose 0.5%. The Nasdaq composite lost 0.8%.
Among big technology companies losing ground, Google's parent company,
Alphabet, fell 4% and Microsoft lost 1.1%.
Overall, the market has been rising as companies head into the closing
stretch of their latest round of earnings reports with sharp overall gains.
Three-quarters of the companies within the S&P 500 have reported results so
far, and Wall Street expects profit growth of 50% when they are all finished.
The Walt Disney Co. rose 3.6% after easily beating Wall Street's profit
forecasts, helped by a $1 billion box office haul from "Toy Story 5" and theme
park revenue.
Elon Musk's SpaceX fell 13.6% following the release late Tuesday of its
first quarterly report as a public company, which showed that it sharply
boosted spending on artificial intelligence. The company did help give
semiconductor giant Nvidia a 3.4% boost after announcing it would exclusively
use that company's chips for its artificial intelligence technology.
Musk had said earlier he would use chips from both Nvidia and Advanced Micro
Devices for SpaceX and his electric vehicle company, Tesla.
Inflation concerns have been hanging over markets and the Federal Reserve.
The central bank has been holding its key benchmark rate steady as it monitors
the costs and the impact on the economy.
In other dealings early Thursday, the dollar rose to 157.85 Japanese yen
from 157.77 yen. The euro fell to $1.1545 from $1.1555.
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