The Market News Today: Global Chip Stocks Plummet Following Intel’s Disappointing Results

Tech Earnings Rattle Markets: Amazon, Intel Sink; Apple Edges Up

U.S. stock futures declined Thursday night following mixed earnings from tech giants. Amazon shares fell 7% after missing revenue estimates and providing weak guidance. Intel plummeted nearly 20% on poor forecasts and announced layoffs. In contrast, Apple’s shares rose slightly after beating expectations. These results contributed to broader market unease, with major indexes posting significant losses in regular trading. The Dow dropped 1.2%, the S&P 500 fell 1.4%, and the Nasdaq tumbled 2.3%, reflecting growing concerns about the economic outlook and potential recession risks.

Intel’s Poor Results Spark Global Chip Stock Plunge Amid Market Sell-Off

Global semiconductor stocks tumbled following disappointing results from Intel, which announced significant layoffs and a cost-reduction plan. The sell-off affected major chip companies worldwide, including TSMC, Samsung, and ASML. The downturn was exacerbated by a broader market sell-off, particularly impacting tech stocks. While some companies like AMD and Nvidia continue to benefit from the AI boom, others struggle to capitalize on the technology. The VanEck Semiconductor ETF closed 6.5% lower, reflecting the industry-wide impact of Intel’s performance and market volatility.

Labor Market Cools in July, Fed Eyes Soft Landing and Potential Rate Cut

The July jobs report is expected to show a cooling labor market, with forecasts of 185,000 new jobs, down from June’s 206,000. The unemployment rate is predicted to hold at 4.1%. This gradual slowdown aligns with the Federal Reserve’s goal of a “soft landing.” Fed Chair Jerome Powell hinted at a possible rate cut in September if economic indicators continue to improve. Markets will closely watch the report for confirmation of Powell’s optimistic view on labor market conditions and inflation progress.

Treasury Yields Dip Below 4% as Economy Weakens

Treasury yields declined, falling below 4% for the first time since February, following Fed Chair Powell’s suggestion of a potential September rate cut. Powell emphasized the economy’s progress toward conditions warranting policy rate reduction. Economic data released Thursday showed signs of weakening, with jobless claims surpassing expectations and the ISM manufacturing index indicating contraction. These developments support the case for earlier monetary easing, with some analysts arguing the Fed should have already begun its easing cycle. Investors are now closely watching upcoming economic indicators and the remaining three Fed meetings this year for further policy direction.

Gold Prices Rise on Fed Rate Cut Hopes and Middle East Tensions

Gold prices strengthened on Friday, poised for a weekly gain due to potential Fed rate cuts and escalating Middle East tensions. Investors await U.S. nonfarm payrolls data for further insight. Fed Chair Powell hinted at possible September rate cuts, boosting market expectations. Geopolitical concerns, including recent developments in Gaza and Tehran, contribute to gold’s appeal as a safe-haven asset. Analysts predict gold could surpass $2,500 if tensions increase and job reports support rate cut projections.