Semiconductor stocks were in focus on Thursday as the sector fell sharply after LAM Research CEO Tim Archer cited supply chain concerns.
- Nasdaq futures reversed overnight, trading about 0.18% higher at the time of writing.
- Despite the intense volatility in the AI trade, some market analysts remain bullish on the industry, with Dan Ives, Partner and Senior Managing Director at Yorkville Ives, maintaining his optimistic thesis.
- Oil prices soared at the time of writing amid stalled negotiations with Tehran and media reports indicating that the U.S. and Israel are planning potential attacks on Iran in the coming weeks.
U.S. stock futures were mixed overnight late Thursday after a sharp selloff in chip stocks.
As of 10:36 p.m. EDT, Nasdaq-100 futures were up 0.18%. Meanwhile, the S&P 500 futures were flat and Dow futures slipped 0.16%.
On Thursday, the benchmark indexes were mixed. The Nasdaq Composite fell 694 points, closing 2.6% lower, while the S&P 500 fell 1.21%. The Dow Jones Industrial Average closed nearly flat.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.02% | 52,867.98 |
| S&P 500 | -1.21% | 7,663.43 |
| Nasdaq Composite | -2.60% | 26,008.86 |
The three indexes are headed to close mixed this week. The Dow is on track to close in the green, while the S&P 500 appears to be poised for a flat close. Meanwhile, the Nasdaq seems positioned to end the week lower.
Key US Market Drivers
Semiconductor stocks were in focus on Thursday as the sector reversed an early-week leg up after LAM Research CEO Tim Archer cited supply chain concerns.
In the earnings call with investors, Archer said that going into 2027, the company sees “supply chain constraints for certain components continuing to limit chip makers and equipment companies’ ability to fully meet end demand.”
Major chip stocks, including Nvidia Corp. (NVDA), Micron Technology Inc. (MU) and Advanced Micro Devices Inc. (AMD) ended the session in red.
Chip-related ETFs also declined at Thursday’s close. The iShares Semiconductor ETF (SOXX) fell nearly 7% at close and continued to decline overnight. The Direxion Daily Semiconductor Bull 3X Shares (SOXL) plunged more than 20%, while VanEck Semiconductor ETF (SMH) fell nearly 6% at close.
Yardeni Research noted in a post on X, “Semiconductor earnings are up 176% year-over-year, yet the industry’s P/E has collapsed to just 14.2. The market doesn’t believe its own profit forecasts.”
Despite the intense volatility in the AI trade, some market analysts are still bullish on the industry. Dan Ives, Partner and Senior Managing Director at Yorkville Ives, said in a post on X, “The prints so far do not support the fear; it’s the opposite as it increases our bullish conviction on AI thesis into year-end and 2027 despite the market jitters. We expect Alphabet, Microsoft, Amazon to confirm the massive Capex spending path next week Monetization (is) key.”
Meanwhile, tensions in the Middle East are escalating as Iran has warned about launching an “offensive” attack.
IRGC spokesman Hossein Mohebi said earlier this week, “Our defense doctrine was previously defensive; we used to say that if a country attacks us, we will respond. Now we say that if a country attacks us, we will both respond and launch an offensive.”
Amid stalled negotiations with Tehran, media reports indicate that the U.S. and Israel are planning potential attacks on Iran in the coming weeks.
On Wednesday, U.S. President Donald Trump told reporters the U.S. was no longer negotiating with Iran, adding, “We are going to have something one way or the other that’ll happen fairly soon.” He also said that while Washington could end the war immediately, it was working to ensure a lasting outcome.
Iran’s Major General Mohsen Rezaei has reportedly said, “Negotiations have been halted, and if a war breaks out, undersea internet cables, data centers, and AI facilities could be among Iran’s targets.”
Oil prices have soared as tensions heat up. Brent crude futures were trading at $113.97 a barrel, up 0.49%, while WTI crude futures traded 0.59% higher at $100.31 per barrel.
Brett Erickson, Managing Principal at Obsidian Risk Advisors, noted the escalating prices in a post on X, questioning how much oil “is this going to rise to if the U.S. and Israel launch all-out strikes and Iran retaliates…”
Markets will now turn their attention to big tech and financial sector earnings next week, while also watching the much-anticipated Federal Reserve decision on key policy rates.
Trending Tickers To Watch
iShares Silver Trust (SLV): The silver ETF is in focus among retail traders amid a sharp selloff, with prices plunging more than 5% at Thursday’s close and continuing to decline in the overnight session.
SPDR Gold Shares ETF (GLD): Gold is also in focus as it sold off on Thursday. GLD fell more than 2.6% at close and was down 0.19% overnight as questions over its safe-haven status rattled markets.
Direxion Daily Semiconductor Bull 3X Shares (SOXL): The semiconductor ETF garnered attention amid a sharp selloff in chip stocks due to rising supply chain concerns.
Bloom Energy Corp. (BE): Shares of the fuel cell maker plunged nearly 9% at close and continued to fall overnight after it posted third-quarter (Q3) results that stoked capex and cash flow concerns.
Other Market Trends
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) were climbing at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) trended down.
Meanwhile, the 10-year U.S. Treasury yield fell below 5% to 4.966%. However, the 30-year Treasury yield was at 5.292%.
The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.02% amid ‘neutral’ sentiment.
Asian markets opened lower on Friday, with South Korea’s KOSPI, Japan’s Nikkei 225, China’s SSE Composite, and Australian stocks trading in negative territory.
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