SK hynix earnings due around 8 p.m. ET put the memory trade back in focus for Investors in chip stocks. The timing mattered because AI worries were still hanging over the sector even as US tech stocks regained their footing on Tuesday.
8 p.m. ET was the point traders were watching because the results were expected to offer a read on demand tied to memory chips. If that demand held up, it would help explain whether the recent pressure on chip stocks had gone too far.
Nasdaq Composite near flat
The Nasdaq Composite bounced back from earlier losses to hover near the flat line, while the S&P 500 rose nearly 0.4% and the Dow Jones Industrial Average climbed 1.2%. Boeing, PayPal, and Coca-Cola all rose after reporting results, and Coca-Cola stock was on track for its best day since 2009.
The mix showed that earnings were doing some of the work that chip sentiment had not. Investors were buying into companies with reported numbers in hand even as they waited for SK Hynix and a clearer view of the memory trade.
President Trump on Air Force One
President Trump said aboard Air Force One on Monday that the US and Iran were in diplomatic talks. “There's a good chance that something could happen, and if it does, good” he said, followed by, “If it doesn't, we go back to doing what we were doing.” Oil prices continued to retreat after the US and Iran halted active fighting, which helped steady the broader tape.
That backdrop mattered because chip stocks were already under pressure from AI-related financing concerns. Nvidia was reported to be exploring a $250 billion funding backstop for OpenAI, a reminder that the AI trade is still being judged not just on demand, but on how much money it takes to keep the buildout going.
Federal Reserve on Wednesday
The Federal Reserve kicked off its two-day policy meeting on Tuesday, and traders’ bets skewed toward it holding rates steady when the meeting ends on Wednesday. US consumer confidence ticked lower in July to 90.8, adding another signal that growth is not running away from policy risk.
For readers watching the chip trade, the immediate test is SK Hynix’s report due around 8 p.m. ET. If the numbers reinforce memory demand, the recent weakness in chip stocks looks more like a financing scare than a demand break; if they do not, the pressure around AI and memory names is likely to stay in place into the Federal Reserve decision on Wednesday.
