The Dow Jones recovered over 400 points from the lows of the day to gain 150 points and close above the mark of 53,000 for the first time. The S&P 500 gained 0.7%, while the Nasdaq gained 1.1% or over 300 points. The market resumed trading after the long independence day weekend.
Gains were led by shares of AMD, which surged 6.5% on a positive brokerage note, while IBM shares also gained 3% on a similar trigger.
Broadcom shares also gained 3.5% after extending a partnership with Apple till 2031. Nvidia recovered to end above the flat line after stating that its “roadmap remains intact.” A report on a server delay had impacted tech shares in Asia earlier in the session.
What Are The Two Major Triggers For Chip Stocks?
The two major triggers for chip stocks include the results that Samsung Electronics will be reporting in just a few minutes from now, along with the US market debut of its chipmaking rival, SK Hynix.
SK Hynix kickstarted the process for its mega IPO on Wall Street on Monday. As per its filing with the US Securities and Exchange Commission (SEC), the company plans on issuing up to 17.7 million American Depository Receipts (ADRs), with each ADR being a tenth of the common share listed in South Korea.
Based on the current exchange rate, the IPO is valued at around $28 billion, marginally lower than Saudi Aramco’s $29 billion, but still the biggest by any foreign company on Wall Street.
According to a Bloomberg report, the IPO demand has already exceeded the total number of ADRs on offer, with multiple large funds committing large sums for purchasing them. SK Hynix could begin trading on Friday, July 10.
While there are no major macro data points set to be reported today, the shares of SpaceX will begin trading as part of the Nasdaq starting today. The stock is still down 30% from its post-listing high of $225 but continues to hold above its issue price of $135.
