Chip Stocks Tumble, Oil Surges, Gold and Silver Slide, Samsung Overtakes Nvidia

Market Overview

Global markets were driven by three major themes on Tuesday.

First, semiconductor stocks came under broad selling pressure. The Philadelphia Semiconductor Index plunged 4.9%, while the U.S. Memory Chip Index dropped 6.8%. Intel fell 10.1% and Teradyne slid 10.3%. Nvidia bucked the trend, gaining 0.71%. The Nasdaq Composite declined 1.16% to close at 25,818.69, while the S&P 500 and Dow Jones Industrial Average fell 0.45% and 0.25%, respectively.

Second, escalating geopolitical tensions fueled a sharp rally in crude oil prices. The United States revoked waivers allowing Iranian oil sales, sending crude prices up as much as 6% intraday. WTI crude rose 2.76% to $70.44 per barrel, while Brent crude advanced 3.01% to $74.16. Meanwhile, a Qatari LNG tanker transiting the Strait of Hormuz reportedly caught fire after being struck by a missile, further heightening concerns over global energy supply disruptions.

Third, a stronger U.S. dollar weighed on precious metals. Spot gold fell 1.47% to $4,104.15 per ounce, while silver dropped 3.38% to $59.96 per ounce. Despite the decline, the People's Bank of China added another 480,000 ounces of gold to its reserves in June, marking its 20th consecutive month of net purchases.

Inflation expectations continued to rise. The New York Fed's June survey showed one-year inflation expectations climbing to 3.7%, the highest level since September 2023. Treasury yields moved higher, with the 10-year yield rising to 4.54% and the 30-year yield surpassing the 5% threshold.

Elsewhere, Samsung Electronics reported a nearly 19-fold surge in second-quarter profit, surpassing Nvidia to become the world's most profitable company. Nevertheless, Samsung shares fell 8% following the results. Chinese equities also retreated broadly, with the Shanghai Composite Index declining 1.26% to 3,990.24. Kuaishou plunged 12%, leading losses among Chinese technology stocks.

Semiconductor Selloff Dampens Risk Appetite

Chipmakers faced widespread selling pressure, dragging the broader technology sector lower. The Philadelphia Semiconductor Index fell 4.9%, while the U.S. Memory Chip Index dropped 6.8%. Intel lost 10.1%, Teradyne declined 10.3%, and Marvell Technology, Western Digital, and SanDisk each fell more than 7%.

Nvidia remained an outlier, gaining 0.71%, but the broader weakness across the semiconductor sector weighed heavily on market sentiment. The Nasdaq Composite ended down 1.16% at 25,818.69, while the Nasdaq-100 briefly fell more than 2% during the session. In Asia, Kuaishou tumbled 12%, leading a broader decline in Hong Kong-listed technology shares.

Outlook and Key ThemesFed Minutes and IMF Economic Outlook in Focus

The Federal Reserve will release the minutes from its latest monetary policy meeting, offering investors further insight into policymakers' views on inflation risks and the future path of interest rates.

At the same time, the International Monetary Fund (IMF) is set to publish an updated edition of its World Economic Outlook. Any revisions to global growth and inflation forecasts could provide important guidance for policy expectations and asset pricing in the second half of the year.

Iran Tensions Raise Concerns Over Oil Supply

The U.S. decision to revoke Iranian oil waivers, combined with the reported attack on a vessel in the Strait of Hormuz, has significantly heightened geopolitical risks surrounding global energy supply.

As one of the world's most critical energy shipping routes, any escalation in tensions around the Strait of Hormuz could further increase the geopolitical risk premium embedded in oil prices while reinforcing inflationary pressures. Investors will be closely monitoring diplomatic developments in the coming days.

Key Events to Watch

• Federal Reserve releases FOMC Meeting Minutes

• IMF publishes updated World Economic Outlook

• U.S. EIA Weekly Crude Oil Inventory Report

• 2026 China Internet Conference opens