Chip Stocks Under Heavy Selling as Market Turns Its Full Attention to Nvidia’s Earnings
🎧 포스팅 1분 요약 / Post Summary
📌 1-Minute Summary
US stocks closed mixed on August 24 (local time). The Dow rose 0.26% on strength in financial stocks, while chip-driven weakness dragged the Nasdaq down 0.76% and the S&P 500 down 0.28%. Micron plunged 5.83%, with AMD and Broadcom falling 3.49% and 2.63% respectively. Markets are now fixated on Nvidia, which reports earnings after the close on the 26th. Meanwhile, the 30-year Treasury yield topped 5.3% — its highest level since 2007 — and the Trump administration signaled it may expand sanctions on countries trading with Iran.
Wall Street had a directionless session overnight. On the surface, the Dow looked like the clear winner, but underneath, a broad sell-off in large-cap semiconductor names dragged the tech-heavy Nasdaq lower. Add a 19-year-high in Treasury yields and fresh signals of expanded Iran sanctions, and markets are more on edge than usual heading into the next big catalyst: Nvidia’s earnings, due out on the 26th. Here’s a breakdown of what moved markets on the day.
① Index Recap: Only the Dow Smiled
On the New York Stock Exchange, the Dow Jones Industrial Average closed up 140.15 points (0.26%) at 53,417.16. The S&P 500 fell 21.51 points (0.28%) to 7,652.86, while the tech-heavy Nasdaq Composite dropped 200.26 points (0.76%) to 25,980.19.
| Index | Close | Change |
|---|---|---|
| Dow Jones 30 | 53,417.16 | +0.26% |
| S&P 500 | 7,652.86 | -0.28% |
| Nasdaq Composite | 25,980.19 | -0.76% |
Big financial names like JPMorgan Chase and Visa held up the Dow, while chip-led selling in tech weighed on the other two indexes.
② Why Chip Stocks Got Hammered
Semiconductors bore the brunt of the day’s losses. Micron Technology tumbled 5.83%, AMD fell 3.49%, Broadcom slid 2.63%, and Nvidia itself dropped 2.9% just one day ahead of its earnings report. SanDisk and Seagate Technology each fell more than 6%. The Philadelphia Semiconductor Index (SOX) led the broader tech decline.
Analysts pointed to growing skepticism over the sustainability of AI data-center growth, along with concerns about political pressure for tighter regulation of AI infrastructure spending. That said, signs of bargain-hunting emerged in pre-market trading on the 25th, when Raymond James upgraded AMD to Strong Buy (price target $641) and Intel rebounded more than 3%.
③ Treasury Yields Hit a 19-Year High of 5.3%
The US 30-year Treasury yield has climbed to a range of 5.27%–5.31%, its highest level since 2007. A ballooning fiscal deficit is driving expanded bond issuance, compounded by geopolitical risk from the Middle East — a combination that’s pushing long-term rates higher. Rising long-term yields tend to weigh on high-valuation growth and tech stocks in particular, and analysts say this rate pressure is part of what’s behind the current chip-sector pullback.
④ Nvidia Earnings: One Day Out, and Wall Street Is on Edge
Nvidia reports fiscal Q2 2027 earnings after the close on August 26 (local time). Consensus estimates call for revenue of $91.9 billion and EPS of $2.08. Options markets are pricing in a post-earnings move of roughly ±5.35% — given Nvidia’s approximately $5.26 trillion market cap, that implies roughly $282 billion in value could shift hands in a single day.
Nvidia shares fell about 7.5% between August 14 and 24, marking their longest losing streak since 2022. Even so, Wall Street’s outlook remains largely bullish: JPMorgan has a $280 price target, Rosenblatt $325, KeyBanc $330, and Cantor Fitzgerald $350 — all maintaining buy ratings.
⑤ Signals of Expanded Iran Sanctions Put Oil and Safe Havens in Focus
US Treasury Secretary Scott Bessent held a press briefing announcing the launch of what he called “Operation Economic Outcast,” targeting the Iranian regime. The warning signaled potential additional sanctions on third countries trading with Iran across digital assets, technology, gold, aviation, and shipping. No new sanctions were actually imposed immediately, but tensions stemming from the Middle East have resurfaced.
💡 Good to Know
- Nvidia reports earnings after the close on 8/26 US Eastern Time — results should be available around the morning of 8/27 Korea time
- Options markets are pricing in roughly ±5% implied volatility, so investors should be prepared for a sharp post-earnings swing in either direction
- Rising long-term Treasury yields can weigh on high-valuation growth and tech stocks
- Geopolitical risk (signals of expanded Iran sanctions) can influence oil prices and safe-haven demand, and is worth watching closely
In the end, Wall Street saved face thanks to the Dow’s record-high rally led by financials, but chip-driven tech weakness, higher-for-longer rates, and geopolitical risk combined to leave the broader market without clear direction. The key event now is Nvidia’s earnings report on the 26th. The outcome could well determine the next chapter of the AI rally, so investors here in Korea will want to watch closely when results land Thursday morning.
References
- Khan.co.kr (Kyunghyang Shinmun), “US Stocks Close Mixed Amid Tech Weakness…Nasdaq Down 0.76%” (khan.co.kr)
- Newdaily.co.kr, “US Stocks Close Mixed…Nasdaq Falls 0.76% on Tech Weakness” (newdaily.co.kr)
- Heraldcorp.com (Herald Economy), “US 30-Year Treasury Yield Hits 5.31%, Highest in 19 Years…Financial Markets on Edge” (heraldcorp.com)
- Benzinga Korea, “Nvidia Could See $282 Billion Swing After Earnings” (kr.benzinga.com)
- TradingKey, “Nvidia Q2 Earnings Preview” (tradingkey.com)
- Newspim, “Pre-Market Movers: Chip Stocks, AMD, Intel Rise” (newspim.com)
- Bitcoin News, “Open Interest Hits $140 Billion as Bitcoin Recovers” (news.bitcoin.com)