Dow Jones Rises 537 Points, Nasdaq Pressured by Chip Stocks

JAKARTA - The United States stock market moved in a different direction on Tuesday. The Dow Jones rose more than 500 points, while the Nasdaq was pressured by the plunge in chip manufacturers.

Anadolu Agency, quoted Wednesday, July 29, reported that the decline in oil prices and the strong performance of a number of companies supported the Dow Jones Industrial Average. At the same time, pressure in the semiconductor sector held back the pace of technology stocks.

The Dow Jones rose 537.24 points or 1.03 percent and closed at 52,747.32. The S&P 500 index gained 0.21 percent to 7,428.78.

The Nasdaq Composite actually fell 0.22 percent to 24,876.91.

Micron shares fell about 9 percent, while AMD fell 8.1 percent. The weakness extended pressure on the chip and technology sector.

Investors also moved funds from high-growth technology stocks to other sectors. Health and financial stocks also hit record highs.

Oil prices fell sharply after Iran discussed the Strait of Hormuz with Saudi Arabia and Oman.

The price of U.S. benchmark West Texas Intermediate crude fell 4 percent to just above $79 a barrel. Brent crude fell more than 5 percent to around $83.80 a barrel.

Amid pressure on technology stocks, Apple has hit a new milestone. The company's market capitalization hit US$5 trillion for the first time after its share price reached a daily high of US$342.89.

Market capitalization is the total value of a company's shares outstanding in the market. Apple shares have gained 25 percent since the start of the year.

Market participants are now awaiting the Federal Reserve's monetary policy decision on Wednesday. The US central bank is expected to keep interest rates on hold.

Economic data showed U.S. consumer confidence fell to 90.8 in July. The June figure was revised up to 92.2. The latest results were also lower than the market forecast of 92.4.

The decline occurred when people's assessments of business conditions and the labor market weakened.

The trade deficit in goods, which is the condition when the value of imports is greater than exports, narrowed by US$4.4 billion to US$101.5 billion in June. Exports fell to US$204.7 billion, while imports shrank to US$306.2 billion.

European stocks mostly strengthened, supported by lower oil prices and positive corporate earnings reports.

The Stoxx Europe 600 index rose 0.35 percent to 646.89. The UK FTSE 100 gained 0.83 percent to 10,871.02. The German DAX 40 added 0.41 percent to 25,464.01, while the French CAC 40 rose 0.63 percent to 8,458.78.

Italy and Spain moved in opposite directions. The Italian FTSE MIB 30 fell 0.69 percent to 51,698.19. Spain's IBEX 35 weakened 0.07 percent to 19,727.