Tracking the Market Trend

TradingKey - On Tuesday, the rotation in the U.S. stock market continued, with the Dow Jones Industrial Average rising more than 500 points. The rally was driven by better-than-expected corporate earnings, a decline in oil prices, and a shift of capital from the semiconductor sector to other sectors. Memory chip stocks continued their downward trend, while SaaS software stocks staged a rebound.

At the close, the Dow Jones Industrial Average rose 1.03% to 52,747.32 points, the Nasdaq Composite Index fell 0.22% to 24,876.91 points, and the S&P 500 Index rose 0.21% to 7,428.78 points.

Apple (AAPL) touched $342.89 during the session, with its market capitalization surpassing $5 trillion for the first time, overtaking NVIDIA (NVDA). Coca-Cola (KO) rose 5% to a record high following its earnings report, while software SaaS stocks bucked the trend and gained ground.

The Philadelphia Semiconductor Index (SOX) fell 4.5%, marking its second consecutive day of declines; the DRAM Memory ETF (DRAM) plummeted 8.89%, with Micron (MU) falling as much as 12%, Corning (GLW) down more than 12%, and SanDisk (SNDK) down over 14%. In after-hours trading, NXP Semiconductors (NXPI) fell more than 4%, while Seagate (STX) rose as much as 10%.

Following after-hours reports that Iran had struck a U.S. military base in Jordan, WTI crude oil (CL) rose 4.5%. Gold (XAUUSD) failed to hold above $4,100, falling 1.16% on the day; Bitcoin (BTC) fell 3.4% during the session.

Market Headline

SK Hynix’s（SKHY） profits surged by 557%, yet still fell short of investors’ high expectations. SK Hynix reported an operating profit of 60.5 trillion won (approximately $42 billion) for the quarter ending in June, falling short of analysts’ average forecast of 64.2 trillion won. Revenue stood at 79.3 trillion won, compared to the market’s average estimate of 83.9 trillion won. Although both key metrics fell short of expectations, the company’s net profit soared 1,242%—far exceeding market expectations—thanks to one-time investment gains. SK Hynix stated that it has signed multi-year contracts with approximately 10 customers.

Seagate’s revenue grew by nearly 50%, exceeding expectations, and its gross margin surpassed 50%, causing its stock price to rise by more than 10% in after-hours trading. Demand for AI storage remains explosive. Seagate’s fourth-quarter revenue was 4.6% higher than analysts’ expectations, with EPS up 120% year-over-year and 12% above market expectations. The operating margin stood at 44.6% (270 basis points above expectations), while the gross margin soared 1,480 basis points year-over-year to 52.7%. First-quarter guidance was equally strong—the midpoint of revenue guidance represents a 56% year-over-year increase, exceeding expectations by more than 8%, while EPS guidance shows a 180% year-over-year increase, surpassing expectations by nearly 25%. The stock rose more than 10% in after-hours trading, driving a broad rebound in memory chip stocks.

NXP Beats on Q2 Revenue and Q3 Guidance, Yet Shares Unexpectedly Drop 6.6% After-Hours。NXP reported second-quarter revenue of $3.5 billion, up 19% year-over-year and 10% quarter-over-quarter, surpassing analysts’ expectations of $3.46 billion, with growth across all end markets and regions. Non-GAAP diluted earnings per share were $3.61, up 33% year-over-year. The company expects third-quarter revenue to range from $3.65 billion to $3.85 billion, with a midpoint of $3.75 billion—higher than the market’s expectation of $3.71 billion. However, this robust earnings report failed to win market approval, and NXP’s stock price fell 6.6% in after-hours trading.

Amazon（AMZN） is overhauling its AI strategy, scrapping most of its flagship models and betting on Frontier Model Research (FMR). According to media reports, Amazon is undergoing a comprehensive overhaul of its AI strategy, phasing out most of its internal models, restructuring teams, and focusing engineers on a new strategy aimed at pioneering cutting-edge fields—Frontier Model Research (FMR). Sources familiar with the matter revealed that Amazon is phasing out high-end flagship models such as Premier and Omni, the Reel video generation model, and the Canvas image generation model, some of which are already in “keep-the-lights-on” (KTLO) mode. Resources are shifting from the existing Nova model to the FMR project led by researcher Pieter Abbeel; the team is developing a brand-new flagship foundational model, expected to be unveiled at this fall’s re:Invent conference.

Apple plans to enter the global smart home market, with the Siri AI assistant at its core. A heavyweight player is entering the smart home arena. Apple analyst Mark Gurman reports that Apple is preparing for a major push into the global smart home market, with a smart home hub built around the all-new Siri AI assistant at its core. According to sources familiar with the matter, Apple also plans to release a new TV set-top box and an upgraded HomePod mini smart speaker. This offensive marks Apple’s full-scale entry into the smart home space, leveraging new hardware devices and an AI software ecosystem.

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The table below lists the ten most actively traded stocks in the market recently. Backed by massive trading volumes and excellent liquidity, these assets have become key benchmarks for tracking global market dynamics.

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