NEW YORK (dpa-AFX) – Another bout of weakness in semiconductor stocks put the US technology exchange Nasdaq under pressure on Tuesday. Market experts identified the upcoming record IPOs as the reason for the price losses.
With a loss of 1.12 percent to 29,084.50 points, the NASDAQ 100 selection index closed well above its daily low. Statements by US President Donald Trump about the Iran war did not have a lasting impact on share prices. On Friday, the stock market barometer fell by 4.8 percent in view of growing fears about interest rates after a solid US labor market report, but has since recovered significantly.
The other indices held up significantly better on Tuesday, as they did recently. The market-wide S&P 500 narrowed its decline to 0.26 percent with 7,386.65 points. The leading index Dow Jones Industrial ultimately rose by 0.17 percent to 50,872.11 points.
The fact that the space company SpaceX and in the foreseeable future the AI companies Anthropic and OpenAI are planning to jump onto the trading floor on Friday is depriving the markets of liquidity, according to chief market analyst Andreas Lipkow from broker CMC Markets. In other words: Investors are cashing in on stocks that are doing well, for example in the semiconductor sector, and are planning to shift their funds into SpaceX & Co.
From the perspective of Consorsbank analyst Jochen Stanzl, SpaceX’s IPO, as well as the capital increase by Google (Alphabet C (ex Google)) parent Alphabet (Alphabet A (ex Google)) and rumors of a capital increase at Meta (Meta Platforms (ex Facebook)), are likely to put the AI rally to the test. “It remains to be seen whether the enormous additional supply of shares will saturate demand,” wrote Stanzl. The uncertainty surrounding this is causing higher volatility, which is likely to continue.
Some headwind for the stock markets also came from Trump on Tuesday, who said the US had to respond to Iran’s shooting down of an American attack helicopter. Recently, due to the precarious but relatively stable situation in the Iran War, there was at least no setback from this side. The currently sharply falling oil prices supported share prices.
Shares in Marvell Technology and Arm Holdings (Arm) stood out from the weak semiconductor sector with discounts of 7.6 and 6.2 percent. Here profit-taking continued after record levels. The industry giants QUALCOMM, Cisco and AMD (AMD (Advanced Micro Devices)) had to cope with price losses of up to 5.7 percent, while NVIDIA only lost 0.2 percent.
Applied Digital shares went up 2.4 percent against the tech trend. The Neocloud company announced a minimum purchase contract with an AI hyperscaler from the USA.
The shares of Nuvalent (Nuvalent A) shot up by a good 39 percent to $123.25. The British pharmaceutical company GSK (GlaxoSmithKline) wants to take over the US biotech company for around 10.6 billion or 124 dollars per share and thus expand its cancer business./gl/men
— By Gerold Löhle, dpa-AFX —