US Stocks Close: Oil Prices Drop Sharply, Dow Rises Over 260 Points, Micron, SK Hynix ADR, and ASML Plunge Together

US stocks traded mixed on Monday (27th), as falling oil prices eased inflation and rate hike concerns following a temporary halt in military attacks between the US and Iran, sending the Dow Jones Industrial Average up over 262 points at closing.

However, semiconductor stocks came under broad pressure after reports of technological breakthroughs in China's semiconductor industry, dragging down Micron, SK Hynix ADR, and ASML. The Philadelphia Semiconductor Index closed down 2.23%, while the Nasdaq Composite declined for the fourth consecutive trading day, and the S&P 500 Index edged slightly higher after trading near flat.

US markets initially rose across the board at the open, as hopes for diplomatic resolution in the Middle East conflict were reignited by the pause in military actions between the US and Iran. President Trump stated that the US is engaging in constructive dialogue with Iran and that an agreement may be possible, while also warning that if negotiations fail, the US military could resume strong military attacks.

International oil prices dropped sharply as geopolitical risks eased. The September Brent crude futures contract fell 8.7%, closing at $88.36 per barrel. West Texas Intermediate (WTI) crude futures declined 7.5%, settling at $82.61 per barrel.

The drop in oil prices also pressured US Treasury yields, with the 10-year yield falling to around 4.64%, alleviating concerns that rising energy prices could fuel inflation and force the Federal Reserve to raise rates earlier than expected.

Investors will closely watch earnings reports this week from Microsoft (MSFT-US), Meta (META-US), Apple (AAPL-US), and Amazon (AMZN-US), particularly focusing on their spending scale and return on investment in AI infrastructure. Last week, Alphabet (GOOGL-US) and Tesla (TSLA-US) reported earnings, and their massive AI capital expenditures and cash burn have raised market concerns.

The Federal Reserve will announce its interest rate decision on Wednesday. According to the CME FedWatch tool, the market estimates a 62% probability of the Fed holding rates steady and a 38% chance of a 25-basis-point rate hike. Investors will also pay close attention to Chair Powell's remarks for clues on inflation outlook and future monetary policy direction.

The day after the Fed's rate decision, the US will release the June Personal Consumption Expenditures (PCE) price index, which could further influence market perceptions of the year's interest rate path.

US stock market performance on Monday (27th):

- Dow Jones Industrial Average: +262.83 points (+0.51%), closing at 52,210.08 - Nasdaq Composite Index: -43.74 points (-0.18%), closing at 24,932.08 - S&P 500 Index: +1.20 points (+0.02%), closing at 7,413.18 - Philadelphia Semiconductor Index: -264.01 points (-2.23%), closing at 11,554.88 - NYSE FANG+ Index: +84.42 points (+0.50%), closing at 16,908.91

Key individual stocks:

Tech giants within the NYSE FANG+ Index showed mixed performance. Meta (META-US) fell 0.22%; Apple (AAPL-US) rose 1.17%; Alphabet (GOOGL-US) gained 2.13%; Microsoft (MSFT-US) increased 1.94%; Amazon (AMZN-US) declined 0.31%.

Most semiconductor stocks in the Philadelphia index closed lower. AMD (AMD-US) plunged 5.17%; Broadcom (AVGO-US) rose 0.34%; NVIDIA (NVDA-US) dropped sharply by 4.99%; Applied Materials (AMAT-US) fell 3.61%; Qualcomm (QCOM-US) gained 1.84%; Micron (MU-US) declined 2.25%.

ADR stocks of Taiwanese companies mostly declined. TSMC ADR (TSM-US) fell 1.07%; ASE ADR (ASX-US) dropped 0.79%; UMC ADR (UMC-US) declined 2.05%; Chunghwa Telecom ADR (CHT-US) rose 0.77%.

Corporate news:

China's memory chip manufacturer ChangXin Memory Technologies (CXMT) surged 466% on its first trading day in Shanghai on Monday, putting pressure on related semiconductor and AI-related stocks. Micron (MU-US) closed down 2.25% at $900.20 per share, while SK Hynix ADR (SKHY-US) plummeted 7.47% to $143.02 per share.

Flash memory maker SanDisk (SNDK-US) plunged 11.02% to $1,278.23 per share, marking the largest decline among S&P 500 components.

Additionally, The Information reported that China has begun manufacturing its own immersion deep ultraviolet (DUV) lithography machines, potentially challenging the long-standing monopoly of Dutch giant ASML. As a result, ASML ADR (ASML-US) dropped sharply by 5.74% to $1,656.17 per share.

NVIDIA (NVDA-US) plunged 4.99% to $196.51 per share, its worst single-day drop since June 5, with a market cap of $4.76 trillion. Reports indicated that NVIDIA is discussing providing $250 billion in financing guarantees to OpenAI, potentially funding the largest data center project to date.

Apple reclaimed the title of the world's most valuable company on Monday, as its stock rose 1.2% to close at $336.91 per share, pushing its market cap to $4.95 trillion—the first time surpassing NVIDIA since May 2, 2025.

Broadcom (AVGO-US) edged up 0.34% to close at $383.22 per share. The company signed a memorandum of understanding with Samsung Electronics to expand cooperation. Both companies expect the value of related collaborations to exceed $200 billion over the next five years, through 2030.

SpaceX (SPCX-US), Elon Musk's AI and space company, successfully completed a Starship test flight late Friday night, but the results brought no new surprises. The stock hit a record low of $108.66 during Monday's session and closed down 1.36% at $113.50 per share.

Wall Street analysis:

Chris Larkin, E*Trade's strategy chief, said the market faces increased potential variables this week, with geopolitical tensions and oil prices being the biggest uncertainties. Even if the Magnificent Seven deliver strong earnings, stock prices may not necessarily rise, especially as continued AI spending expansion deepens investor concerns about returns.

Larkin noted that the market widely expects the Fed to hold rates steady on Wednesday, but the probability of a rate hike has risen to its highest level in some time, suggesting US stocks may continue to fluctuate in the short term.

Senior market strategist Louis Navellier believes the pause in US-Iran attacks has driven down crude prices and market rates, indicating that US stocks still have room to rise further if the Iran conflict fully ends.

JPMorgan maintains a tactically bullish stance on US stocks, expecting lower bond yields, a weaker dollar, and strong corporate earnings to support equities. However, the semiconductor sector has accumulated significant bullish positioning, and a shift in market sentiment could trigger concentrated selling. Additionally, the unresolved Iran situation remains a major risk for US stocks.

(All figures are updated as of press time; please refer to actual quotes for accuracy.)