Market

August 6, U.S. equities started the session on a cautious footing as the Dow Jones Industrial Average inched up 0.2% to 54,457, the S&P 500 added 0.1% to 7,729, while the tech-heavy Nasdaq Composite slipped 0.3% to 26,285. Investors weighed a resilient labor market and sliding semiconductor prices against a solid batch of Big Tech results, leaving overall sentiment tentatively balanced.

Declines in chip and software names set the early tone: Western Digital falls 20.8% after warning of a deeper memory-market downturn, Datadog drops 18.5% on a sharp guidance cut, AppLovin Corporation slides 18.4% as growth cools, Micron Technology sheds 5.7% amid DRAM price pressure, and Intel loses 3.2% following bearish analyst revisions. Offsetting some of the gloom, SoundHound AI Inc jumps 17.0% on a new auto-sector deal, IonQ Inc. rises 2.9% after announcing expanded cloud quantum services, Apple gains 1.5% on upbeat iPhone sales, NVIDIA adds 1.1% as demand for AI GPUs stays strong, and Microsoft inches up 0.7% on fresh Copilot adoption headlines.

Elsewhere, momentum traders punished levered chip ETFs, with Roundhill Memory ETF down 8.0% and Direxion Daily Semiconductors Bull 3x Shares off 6.1%, while the inverse Direxion Daily Semiconductors Bear 3x Shares rallies 5.8%. Among Chinese-related movers, Paranovus Entertainment Technology soars 91.3% on a blockbuster VR launch, Noah climbs 6.1%, and GigaCloud Technology advances 2.7%; in contrast, Tesla Motors slips 1.6%, XPeng Inc. loses 1.5%, and PDD Holdings Inc declines 1.4% as EV and China consumer names underperform.

News

Apple beats estimates and lifts outlook. The iPhone maker topped consensus on revenue and EPS, citing robust premium handset demand and early AI services traction. Management guided for accelerating growth in the holiday quarter, sending shares higher.

Western Digital misses and warns on pricing. The storage giant reported a wider-than-expected fiscal Q4 loss and flagged continued weakness in NAND pricing. Investors fear prolonged margin pressure, driving the stock down sharply at the open.

Datadog cuts full-year forecast. The cloud-monitoring firm trimmed its revenue guidance, blaming slower enterprise spending. Analysts slashed price targets, triggering a double-digit sell-off.

Micron issues cautious demand commentary. In a pre-recorded conference call, the memory leader said data-center orders are being pushed out, sparking fresh concerns about a semiconductor inventory glut.

SoundHound AI inks multiyear automotive deal. The voice-AI specialist announced a contract with a top-five global automaker to embed conversational assistants across new models. The agreement could accelerate revenue growth and boosted the share price.

Tesla hikes Model Y prices. The EV maker raised U.S. sticker prices by $1,500 to protect margins amid higher battery costs. Investors worried the move could dampen demand, nudging the stock lower.

Weekly jobless claims unexpectedly decline. Initial filings fell to 205,000, underscoring labor-market resilience and reinforcing expectations the Fed will keep rates elevated longer.

Fed governor signals data-dependent stance. Speaking at a policy forum, the official said recent inflation progress is encouraging but not yet decisive, leaving the door open for additional tightening if needed.

SEC unveils draft rules on AI disclosures. Regulators proposed that broker-dealers and advisers detail their use of artificial intelligence in client interactions. Industry groups warned of higher compliance costs.

OPEC+ reaffirms output cuts. The cartel maintained its production targets, keeping crude above $85 a barrel. Energy giants Exxon Mobil and Chevron edged higher in early trading on the supportive price backdrop.