The declines on Wall Street strengthen; The AI ​​server company that plunges by about 15%

18:05

After much volatility in the first hours of trading, the declines on Wall Street are strengthening. The Nasdaq falls by about 0.9%, the S&P 500 loses its value by about 0.6% and the Dow Jones weakens by about 0.8%.

The chip shares weigh on trading, while the “Magnificent Seven” also – Nvidia , Microsoft , Alphabetical (Google) , Amazon , Meta , Tesla anddark – are now all trading in negative territory.

17:45

Trading on Wall Street continues to be conducted in declines, although trading is conducted with great volatility. As of now, the Nasdaq and the S&P 500 are down about 0.3%, while the Dow Jones is down about 0.7%.

The shares of the server company Super Micro Computer Drops by more than 10% in Wall Street trading, after announcing a capital raising of 7 billion dollars. According to the company’s official statement, the issuances will be part of Super Micro’s plan “to finance the purchase of components to satisfy the AI ​​orders the company has received in recent weeks for its advanced AI servers.” As of now, it has written off about $4 billion from its value, which now stands at about $20.5 billion.

The company, which designs and manufactures server and storage systems, said that it had received $39 billion in orders for its AI servers in recent weeks. According to a report in Marketwatch, the company plans to issue new shares worth $1.25 billion, and depositary shares worth $3.75 billion, which represent a proportional share of the convertible preferred shares that the company recently issued. In addition, the company plans to use an open market sales program (ATM program) to sell up to $2 billion worth of common stock, beginning in the third quarter of 2026.

Recall that just last week, she announced Alphabetical (Google) plans to raise a massive $80 billion in capital to finance its expansion in the AI ​​field – a move that has rekindled concerns among some investors regarding the huge capital expenditures of the companies operating in the artificial intelligence arena.

17:00

Trading on Wall Street is currently in slight declines. The Nasdaq index falls by about 0.2%, the S&P 500 loses its value by about 0.2% and the Dow Jones weakens by about 0.4%.

Kathy Bosjancic, Chief Economist at Nationwide, commented on the CPI released earlier today and told MarketWatch that she estimates it has reached its peak, and from the current point will begin to decline; This, on the assumption that the USA and Iran will reach an agreement in the near term that will lead to the reopening of the Strait of Hormuz.

16:30

Wall Street opens the day with lower prices, against the backdrop of growing tensions between the US and Iran and the publication of the consumer price index for the month of May, which showed an annual increase of 4.2% – the highest level in three years. The technology-biased Nasdaq index falls by about 0.7%, while the S&P 500 and the Dow Jones both weaken by about 0.6%.

The negative momentum in chip stocks continued, with declines among prominent players such as Nvidia , Micron , AMD andBroadcom . After weakening yesterday as well, the SOXX basket fund, which tracks chip stocks, is down about 1%.

In the market, the declines are attributed to several factors. Some analysts estimate that investors are making room in their portfolios for SpaceX’s IPO this Friday, which will be the largest initial public offering (IPO) in history. Others believe that these are realizations after the unprecedented rally presented by the chip index in the recent period, since even after the recent pressures experienced by these shares, the SOXX basket fund still registers an increase of over 80% since the beginning of the year.

Martha Norton, chief investment strategist at Empower Investments, told CNBC that “If we’re talking about the essence of what we’ve seen in the last few weeks, it’s really been concentrated in that area of memories and chips that’s been driving the market. That’s been the real force behind it all, and it’s really jumped so hard, it feels very close to a peak right now. So, does that mean there’s some kind of deterioration in the fundamentals of a market? I’m not so sure about that, but It certainly seems that there is a tense sentiment and that we are getting some kind of correction.”

15:55

Ronan Menachem, the chief economist of Mizrahi Tefahot, referred to the consumer price index in the US, noting that “Today’s inflation figures are the highest in three years. However, the energy section, which jumped almost 4% in May alone, contributed 60% to the increase rate of the general index. In general, in the last 12 months the fuel section of its types has jumped by no less than 40%. Therefore, although inflation has increased in the bottom line, this is not a horizontal increase, but rather an extraordinary effect of one section. This also explains the gap between the increase in the general index and the increase in the core index, which does not include the energy and food items. By the way, the food section increased by only 0.2%, less than the increase in the general index, and it remains to be seen whether the increase in the price of fuels and inputs for its production will have later effects on the following indices.”

Menachem added that “the more encouraging news comes from the direction of the housing section, which did rise 3.4% in the last 12 months, but this rate was lower than the increase in the general index (even on a monthly basis) and in general the moderation of this section – which is the largest and most important in the entire index. Cumulative effect of the high interest rate in the American economy. Another finding with a local “flavor” familiar to us – flight prices jumped 2.7% in May, and like in many places in the world they pull the general index up.”

“Bottom line, although the index was in line with expectations, but in general it indicated a high and expanding price environment, and together with the strong employment report from last Friday – as it surprised to the upside and pointed to strength in the wage and employment news – will leave the Federal Bank no choice but to keep the interest rate unchanged, and perhaps also consider raising it later this year. The market now attributes a 40% probability that the interest rate will rise by 1/4 percent in the month of October,” concluded Menachem.

15:30

In accordance with analysts’ expectations, the US consumer price index for the month of May showed an increase of 0.5%, reflecting an annual inflation rate of 4.2% – a three-year high. Most of the inflationary increase followed a 3.9% jump in energy prices, in light of the crisis in Hormuz.

However, core inflation, which strips out volatile energy and food prices, climbed 0.2% in May and reflected an annual rate of 2.9%. While the annual core inflation rate was in line with market forecasts, the monthly rate was below expectations, at 0.3%.

In the background to the publication, the futures contracts in the US are now recording decreases of up to 0.8%, and are more moderate than those recorded earlier in the day (decreases of over 1%).

14:12

Trading continues to be conducted in a negative trend, as investors around the world remain vigilant, and await the publication of the inflation data for the month of May in the USA. According to the forecasts, in about an hour, the index is expected to jump to an annual rate of 4.2% (compared to 3.8% in April).

In Europe, trade continues to be conducted with falling rates. The FTSE (London) and CAC (Paris) indices lose about 0.4% each, while the DAX index in Frankfurt leads the negative trend with a sharper decline of about 1.2%.

The negative sentiment from Europe is coming more strongly to Wall Street futures, led by the technology sector. The Nasdaq contracts are now losing about 1.4%, while the S&P 500 and the Dow Jones are down about 0.9%.

The US bond market is clearly stable this morning, and the yields are trading almost unchanged. The 2-year yield is trading around 4.13%, the 10-year yield is around 4.53%, and the 30-year yield is trading at around 5.02%.

In the digital currency sector, Bitcoin also responds to the general negative sentiment and registers a decrease of about 1.6%.

Oil prices of all types register increases of about 1%. On the other hand, the price of gold registered a sharp decrease of about 2.4%, with an ounce trading around $4,185.

12:04

After the morning opened with slight and similar rises, there was a certain indifference on the continent in view of the declines in the world. Now the stock exchanges of London, Paris and Frankfurt moved to decreases of about 0.2%.

10:25

Trading in Europe opened this morning with slight increases and it seems that the continent shows a certain indifference in the face of the declines in the world. The stock exchanges of London, Paris and Frankfurt are now recording increases of about 0.2%.

Chip and technology stocks in Asia resumed their declines this morning, following overnight losses on Wall Street, after a brief rally in chipmakers lost momentum amid lingering concerns over artificial intelligence-related overpricing.

Japan’s SoftBank Group fell 10% amid a broader decline in technology stocks, after efforts to secure at least $6 billion through a leveraged loan (securities pledge) backed by its holdings in OpenAI ran into difficulties, according to a Bloomberg report. The Japanese technology investment giant is looking at alternative financing options, although it may revisit the loan issue at a later date.

Japanese chip makers Advantest and Renesas Electronics fell 3.8% and 3.4%, respectively.

In South Korea, memory chip giant SK Hynix fell more than 8%, while Samsung Electronics fell 7.45%. Battery maker Samsung SDI fell more than 5%, while display screen maker LG Display fell nearly 9%.

08:34

Eyes are on the inflation data that will be published in the next two days: the Consumer Price Index (CPI) and the Producer Price Index (PPI). Inflation in the US is expected to cross the 4% mark for the first time in three years, and this development could affect the economy and markets for the rest of the year.

In the bond market, the yield on the ten-year bond is 4.53%. The yield on the two-year bond, which is considered more sensitive to short-term interest rate changes, fell by three basis points to 4.13%.

But yields are still high – the US bond market is sending a sharp message to the new chairman of the Fed, Kevin Warsh, that interest rates are still not high enough.

The most prominent sign of this is the two-year government bond yield, which is considered the most sensitive to interest rate expectations. The yield jumped to a record high in more than a year, while the Fed’s official interest rate range currently stands at 3.5%-3.75%.

In other words, the bond market is already pricing a higher interest rate than what currently exists.

The move strengthened especially after the stronger than expected employment report, which showed that the American labor market is still solid despite the high interest rates. Following the data, traders began pricing in an interest rate increase of a quarter of a percent as early as October.

The main concern of investors is twofold: the high energy prices following the war with Iran may return to semi-inflation. The investment boom in artificial intelligence may overheat the economy and increase demand. Therefore, the market is increasingly estimating that the Fed will have to re-tighten monetary policy to prevent overheating.

The situation creates a challenge for Warsh. Before taking office, he often hinted that the monetary policy was already limiting economic activity and that there was room for easing in the future. Now he is facing a bond market that signals exactly the opposite: that the Fed may be “behind the curve” in the fight against inflation. Now the eyes are on the inflation data that will be published today.

08:17

Wholesale inflation in Japan (PPI) accelerated in May at the sharpest rate in three years, after the inflationary pressures resulting from the war in the Middle East spread to other sectors of the economy, according to data published this morning. The figure reinforces the estimates that the central bank of Japan will continue to raise interest rates.

The Bank of Japan is expected to meet next week, and the markets estimate that it will raise interest rates for the first time since December, in an attempt to deal with the growing inflationary pressures resulting from the weakening of the yen and the spike in energy prices following the war.

06:14

The futures contracts on the stock indices in the US register slight declines this morning, after the US launched “self-defense strikes” against Iran, in response to the downing of the helicopter last night.

Nasdaq futures lose 0.4%, the S&P 500 loses 0.2% and Dow Jones futures fall about 0.1%.

Asian markets opened this morning in a negative trend, with the South Korean Kospi index leading the decliners with a drop of over 3%. The Nikkei and the Hang Seng lose over 1% each, and the Shenzhen falls about 1.9%.

Oil prices register moderate increases following the attack: Brent oil futures rise by about 0.8% and are trading around $92 per barrel; A barrel of American oil is now trading around $88.9, an increase of about 0.8% as well.

The tension in the Middle East increased again last night (Tuesday) in the evening hours, after American forces launched strikes against Iran “in response to the shooting down of a US Army Apache helicopter yesterday”, according to the US Central Command. President Donald Trump had earlier accused Iran of shooting down the helicopter, which he said was conducting a patrol over the Strait of Hormuz.