Chip Stocks Slide as Telecom, Airline Sectors Rally
Complete. Here is the key summaryIntel and Micron drop over 5%, weighing on semiconductors; AT&T and Verizon surge over 4% leading telecoms. Tesla extends slide nearly 4%, while American Airlines gains close to 6%.
During the July 24 trading session, the three major U.S. indices showed mixed performance. Semiconductor stocks broadly came under pressure, with Intel and Micron both sliding over 5%, while Nvidia traded near the flatline. Telecom stocks rallied, led by the carrier sector, with AT&T and Verizon both gaining over 4%. Tesla extended its post-earnings decline, falling nearly 4% intraday.
On the sector front, chip stocks were the primary drag of the session—Intel fell over 5%, Micron dropped nearly 7%, and Super Micro Computer declined over 2%. Meanwhile, traditional sectors including telecom, airlines, and steel showed strength. Chinese-concept new energy and AI-related stocks broadly moved lower.
Semiconductor Sector Under Broad Pressure: Intel, Micron Drop Over 5%
As of press time, Intel (INTC) fell 5.5% to $94.69 with $126 million in turnover; Micron Technology (MU) slid 6.8% to $922.77 with $33.42 million in turnover; Nvidia (NVDA) edged up 0.06% to $208.88 with $64.79 million in turnover; Super Micro Computer (SMCI) declined 2.2% to $30.51.
On the news front, Google parent Alphabet's earlier Q2 earnings report showed full-year capex guidance raised to $205 billion, along with the company's first negative free cash flow since 2004, triggering broad market concerns about returns on AI infrastructure investment—sentiment that rippled across the entire semiconductor sector. On the other hand, Nvidia CEO Jensen Huang posted his first tweet on X platform, co-signing an open letter with Microsoft, Meta and others backing open-source AI models, arguing that open source strengthens security, accelerates innovation, and safeguards national sovereignty, providing some support for Nvidia's stock.
Telecom Sector Rallies: AT&T, Verizon Gain Over 4%
As of press time, AT&T (T) rose 4.3% to $23.94 with $50.37 million in turnover; Verizon (VZ) gained 4.4% to $45.77 with $32.31 million in turnover.
In terms of catalysts, both telecom operators have recently received bullish coverage from multiple institutions, with the market expecting their fiber broadband and 5G fixed wireless access businesses to accelerate growth in the second half of the year. Additionally, Bank of America strategist Hartnett noted in a recent report that in the current environment of tightening financial conditions, defensive assets with stable cash flows are increasingly favored by capital.
Airline Stocks Surge Across the Board: American Airlines Up Nearly 6%
As of press time, American Airlines (AAL) jumped 5.9% to $14.36 with $46.43 million in turnover; JetBlue Airways (JBLU) surged 6.4% to $5.31 with $35.76 million in turnover.
On the catalyst front, fuel prices have recently retreated to a phase low, helping ease cost pressures for airlines. Additionally, summer travel peak season data has been robust, with industry load factors holding at elevated levels.
Elsewhere, Tesla (TSLA) fell 3.7% to $307.98. The company's Q2 earnings missed expectations, erasing more than $214.5 billion in market cap in a single day. Both JPMorgan and UBS have lowered their price targets, with investors remaining skeptical about the return prospects of its massive investments in AI and robotaxis. Cleveland-Cliffs (CLF) surged 8.9%, with the steel sector buoyed by infrastructure policy expectations. Coinbase (COIN) rose 2.9% as cryptocurrency market sentiment improved. Palantir (PLTR) dropped 5.3%, extending the recent pullback trend in tech stocks.