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On May 8th, local time, the US stock market saw a collective rise in its three major indices, with tech stocks leading the charge. The S&P 500 and Nasdaq Composite indices both hit new highs, marking their sixth consecutive week of gains, the longest winning streak since October 2024.
At the close of trading, the Dow Jones Industrial Average rose 12.19 points, or 0.02%, to 49,609.16; the Nasdaq Composite surged 440.88 points, or 1.71%, to 26,247.08; and the S&P 500 gained 61.82 points, or 0.84%, to 7,398.93. For the week, the Dow rose 0.22%, the S&P 500 gained 2.33%, and the Nasdaq jumped 4.51%, with all three indices posting gains.
The most notable phenomenon in the market on the day was the collective frenzy in the storage chip sector. The Philadelphia Semiconductor Index soared 5.51% to a new high, with a weekly gain of 11.14%. Individual stocks saw significant gains, with Micron Technology rising 16.60%, Western Digital up 15.49%, Intel gaining nearly 14%, AMD up over 11%, and Seagate Technology rising over 2%, all hitting new highs.
The core driver behind the surge in storage chip stocks is the severe imbalance between supply and demand. Since the outbreak of the Middle East conflict at the end of February, the spot prices of DRAM and NAND flash chips have risen by approximately 25% and 18%, respectively. The reasons for the supply shortage include: Korean manufacturers account for over 60% of global storage chip supply, and the conflict in the Middle East has led to shipping disruptions and increased insurance costs, affecting shipments; AI servers are consuming a large amount of production capacity for high-bandwidth memory (HBM), squeezing traditional PC and smartphone memory supply; major manufacturers have reduced capital expenditures over the past two years, resulting in current production capacity being unable to quickly respond to growing demand.
Micron Technology is benefiting from the rise in DRAM and NAND prices, as well as its leading position in the HBM market. Micron’s HBM3E product has been adopted by Nvidia and AMD, with analysts predicting that HBM-related revenue will grow from approximately $2 billion in 2025 to around $5 billion in 2026. Micron expects its fiscal 2026 revenue to reach a record high of over $40 billion, up around 30% year-over-year.
SanDisk, which spun off from Western Digital in February last year, is focusing on NAND flash and solid-state drive (SSD) businesses. Since its independence, the company has been able to more flexibly adjust its production capacity and pricing strategy, and its newly released SSD product for AI data centers has received purchase intentions from several server manufacturers.
Aside from storage chip stocks, major tech stocks also saw gains on the day. Apple rose over 2% to a new high; Tesla surged over 4%; Nvidia gained over 1%; Google rose 0.71%; and Amazon increased 0.56%. However, Microsoft and Meta fell over 1%, indicating that market funds are being reconfigured between sectors.
In terms of Chinese stocks, the Nasdaq China Golden Dragon Index fell 0.47% on Friday, underperforming the broader market. Popular Chinese stocks saw mixed performances, with Atersol Energy rising over 13%, Jinko Solar up over 5%, Li Auto gaining over 2%, and Beike rising over 2%. On the downside, Zai Lab fell nearly 6%, New Oriental fell nearly 5%, Pinduoduo fell 2.69%, and Xiaoma Zhixing fell over 3%.
“International investment banks are also cautious about the AI tech bubble, but they have to allocate funds, otherwise, they won’t be able to explain themselves to clients seeking high returns. The AI tech revolution has a promising future, and many great companies will emerge, but that doesn’t mean stock prices won’t fluctuate greatly, as stock price valuations and industry development are not contradictory,” Yang Delong, chief economist at Foresea Fund, told reporters.
He also stated that current US stock valuations are high, and there is a lack of attractive investment targets. Berkshire Hathaway’s holding of nearly $40 billion in cash, yet being unwilling to chase high prices, is a reflection of this cautious attitude.
On the news front, the latest data from the US Labor Department showed that the US non-farm payroll data for April was better than expected, with the unemployment rate remaining unchanged at 4.3%. The job market has shown resilience in the face of energy shocks, Chris Zaccarelli, chief investment officer at Northlight Asset Management, said.
Ellen Zentner, chief economist at Morgan Stanley Wealth Management, noted that the strong employment data has allowed the Fed to maintain its current stance – observing and waiting, focusing on inflation. A rate cut is not on the agenda in the short term.
Lindsay Rosner, a portfolio manager at Goldman Sachs Asset Management, also pointed out that strong data and inflation pressure have largely ruled out the possibility of easing in the near term, but this judgment will change with the development of the Middle East situation and energy prices.
On May 9th, according to a report by Xinhua News Agency citing Iran’s Tasnim News Agency on the 8th, Iran is drafting a bill related to the Strait of Hormuz.
The chairman of the Iranian parliament’s national security committee stated that the parliament has held multiple meetings with relevant institutions, including the foreign ministry and the port and maritime organization, to discuss the content of the bill. Once the parliament resumes, the bill will be submitted for review.
According to CCTV News, on the 8th, an Iranian military spokesperson said that the situation in the Strait of Hormuz is currently calm, but if the US side enters the relevant area again and “causes trouble” for Iranian ships, conflict may occur.
On the afternoon of the 8th, the Iranian Islamic Revolutionary Guard Corps released a statement saying that Iranian armed forces had a “sporadic clash” with US warships in the waters of the Strait of Hormuz earlier that day.
UN Secretary-General António Guterres’ deputy spokesperson, Farhan Haq, said on the 8th that Guterres called on the US and Iran to exercise maximum restraint to avoid further escalation.
