US stock indices opened mixed on July 7 (local time), with the Dow Jones Industrial Average rising 0.24% while the S&P 500 and Nasdaq fell 0.21% and 0.74% respectively as of 9:36 AM, driven by a broad sell-off in semiconductor stocks. Investor sentiment weakened following Samsung Electronics' earnings announcement, which raised concerns over the sustainability of the artificial intelligence-led rally. The market also reacted to reports that Iranian military forces fired at least two missiles at merchant vessels near the Strait of Hormuz, causing significant damage but no casualties, according to US officials cited by Axios.
Semiconductor Stocks Lead Market Decline on July 7
Memory chipmaker Micron fell 6.68%, while Western Digital and SanDisk dropped 6.93% and 7.94% respectively. Intel declined 7.69% and Marvell Technology fell 6.07%. Richard Hunter, head of markets at Interactive Investor, stated that the semiconductor weakness reflects "not demand weakness or short-term profitability, but whether this represents a new phase in investor reaction." Hunter added that "the key is whether these profit levels can be sustained enough for hyperscalers to recoup the trillions of dollars poured into AI investment."
Iranian Military Fires Missiles at Ships Near Strait of Hormuz
US online outlet Axios reported on July 7 (local time), citing two US officials, that Iranian forces fired at least two missiles at merchant ships transiting the Strait of Hormuz that evening. Both vessels sustained significant damage, but no casualties occurred, according to the officials. The incident contributed to market uncertainty.
Nvidia Falls on Chinese AI Chip Reports; Fiserv and Rivian Move on Corporate News
Nvidia dropped 1.55% following reports that Chinese AI startup DeepSeek is developing its own AI chips. Payment processor Fiserv surged 6.35% on news that the company held discussions with JP Morgan and Bank of America, among other US banks, to sell its payment infrastructure unit that processes debit card transactions. Electric vehicle maker Rivian fell 13.36% despite second-quarter revenue guidance exceeding market expectations, as the company announced a 75 million share offering.
European Stocks Mixed; WTI Crude Rises
European markets showed mixed performance. The EuroStoxx50 index traded 0.61% lower at 6,359.22, while Germany's DAX fell 0.60%. The UK's FTSE100 and France's CAC40 rose 0.68% and 0.27% respectively. International oil prices climbed, with the near-month August 2026 delivery West Texas Intermediate (WTI) crude rising 1.63% to $69.67 per barrel.
FAQ
What caused US stock indices to open mixed on July 7?
US stock indices opened mixed on July 7 due to a semiconductor sell-off triggered by concerns over AI rally sustainability following Samsung's earnings, combined with news of Iranian missile attacks on ships near the Strait of Hormuz.
Which semiconductor stocks fell the most on July 7?
SanDisk fell 7.94%, Intel dropped 7.69%, Western Digital declined 6.93%, Micron lost 6.68%, and Marvell Technology fell 6.07% on July 7.
