Wall Street's major US stock indexes delivered mixed results last week as the Dow Jones Industrial Average closed above 53,000 on Monday for the first time before ending the week down 0.5%, while the Nasdaq gained 1.74% and the S&P 500 rose 1.23%. The divergence stemmed from renewed volatility in semiconductor stocks and escalating US-Iran tensions that pushed oil prices higher. Semiconductor stocks swung sharply throughout the week as investors questioned AI trade valuations, while crude oil climbed to $76 per barrel following Iran's attack on a Qatari liquefied natural gas tanker near the Strait of Hormuz and subsequent US military strikes on 90 Iranian targets. The week illustrated persistent market sensitivity to geopolitical energy supply risks and technology sector concentration, with both the Nasdaq and S&P 500 finishing higher in four of the past five weeks despite the turbulence.
Semiconductor Stocks Swing on Samsung Results and China AI Chip Report
The VanEck Semiconductor ETF rose approximately 2% on Monday before dropping almost 4% on Tuesday after Samsung's results failed to impress investors and Reuters reported that China's DeepSeek is developing its own AI chip. Micron fell 4.7% on Tuesday. The semiconductor trade stabilized on Wednesday, with the VanEck Semiconductor ETF climbing 2.5% on Thursday led by a 4.5% jump in Micron and a 7.6% gain in Sandisk. Nvidia rose 4% on Friday to close at $210.96 per share, its highest close in almost a month. Friday's chip stock action was muted as investors turned attention to SK Hynix's US market debut, which opened at $170, approximately 14% above its $149 offering price.
Apple Expands Broadcom Partnership in Multiyear Deal Exceeding $30 Billion
Apple announced on Wednesday that it was expanding its partnership with Broadcom in a multiyear deal expected to exceed $30 billion. The agreement calls for the production of more than 15 billion US-made chips and includes a $1.5 billion expansion of Broadcom's manufacturing facility in Fort Collins, Colorado. Apple has historically tapped Broadcom for connectivity chips that help its devices connect to cellular, WiFi and Bluetooth networks. Broadcom shares climbed nearly 5% on the news Wednesday. On Monday, Broadcom said in a securities filing that it agreed to supply Apple with a range of custom ASIC silicon products for use in multiple generations of Apple products. Broadcom rose 10% for the week.
Meta Launches Cloud Business and AI Monetization Tools
Meta Platforms confirmed on July 1 that it is preparing to launch a cloud business that would sell excess computing power to outside customers, putting the company in competition with Amazon Web Services, Microsoft Azure, and Alphabet's Google Cloud. On Tuesday, Meta launched Muse Image, an AI image-generation model aimed at attracting creators and advertisers. The technology will power new tools through Meta's Advantage Plus advertising platform. On Thursday, Meta unveiled Muse Spark 1.1, which it called its strongest model yet for coding and agentic AI tasks. The company said it would charge developers to access the technology. Reuters reported Thursday that Meta plans to begin manufacturing its custom AI chip in September as it looks to double its computing capacity next year. The chip is co-designed with Broadcom and manufactured by Taiwan Semiconductor Manufacturing Co. Meta rose 6% on Friday and jumped 15% for the week.
Iran Attacks Qatari Tanker as US Strikes 90 Military Targets
Crude prices jumped on Tuesday after Iran attacked a Qatari liquefied natural gas tanker near the Strait of Hormuz. WTI crude climbed back to $76 per barrel on Tuesday. The pressure intensified on Wednesday after President Donald Trump said the ceasefire with Iran was over and the US military struck 90 Iranian military targets, including air defense systems. Energy stocks including ConocoPhillips, Chevron, and Marathon Petroleum rallied Tuesday. By Friday, oil prices pulled back after Trump said Iran had called to make a deal and the two sides will continue talks. The jump in crude pushed the 10-year Treasury yield to its highest level since May.
FAQ
What did the Dow Jones Industrial Average do on Monday?
The Dow Jones Industrial Average closed above 53,000 on Monday for the first time ever before renewed US-Iran tensions erased those gains, leaving the index down 0.5% for the week.
What did Apple announce with Broadcom?
Apple announced on Wednesday that it was expanding its partnership with Broadcom in a multiyear deal expected to exceed $30 billion, calling for the production of more than 15 billion US-made chips and including a $1.5 billion expansion of Broadcom's manufacturing facility in Fort Collins, Colorado.
Why did oil prices rise last week?
Crude prices jumped on Tuesday after Iran attacked a Qatari liquefied natural gas tanker near the Strait of Hormuz, and pressure intensified on Wednesday after the US military struck 90 Iranian military targets following President Trump's statement that the ceasefire with Iran was over.
