New York Stock Exchange Ends Day with Decline Amid Chip Stocks Sell-Off

The New York Stock Exchange ended the day with a decline, led by a sell-off in chip stocks. The Dow Jones index fell 0.25% to 52,925.15 points. The S&P 500 index declined 0.45% to 7,503.85 points, and the Nasdaq index fell 1.16% to 25,818.69 points. Analysts attributed the sell-off in chip stocks to news that Chinese company DeepSeek had developed its own artificial intelligence chip. Marvell Technology's shares fell 7.5%, Lam Research's shares fell 6.9%, AMD and Applied Materials' shares fell 6.5%, Micron Technology's shares fell 4.7%, Qualcomm's shares fell 1.9%, and Broadcom's shares fell approximately 1%. Geopolitical tensions were also on the rise, as news of Iran's renewed attacks on the Strait of Hormuz raised concerns about escalating tensions in the Middle East. The US administration canceled a 60-day general license that allowed for the production, delivery, and sale of Iranian oil. These developments led to a 5% increase in Brent crude oil prices, which rose to $75.71 per barrel as of 23:00 TSİ. On the macroeconomic data front, the US trade deficit increased by 42.2% in May, reaching its highest level since March 2025. US consumers' short-term inflation expectations also rose to 3.7% in June, the highest level since September 2023. The Strait of Hormuz Crisis Strikes the Energy Corridor Iran's renewed attacks on the Strait of Hormuz have raised concerns in the energy market, while the US cancellation of the general license for Iranian oil production, delivery, and sale has led to a rise in oil prices. These developments may cause fluctuations in the energy corridor and lead to further increases in oil prices. A New Front in the Chip Wars The sell-off in chip stocks signals the opening of a new front in the chip wars. China's DeepSeek developing its own artificial intelligence chip has created a new competitive environment in the chip industry, while the US restrictions on chip companies indicate that the chip wars will intensify.