On July 7 Eastern Time, the three major U.S. stock indexes closed lower, with funds cashing out after the initial rally. The Dow Jones Industrial Average closed at 52,826.62 points, down 0.43%; the S&P 500 closed at 7,481 points, down 0.75%; the Nasdaq suffered the heaviest pressure, plummeting 1.52%, with AI and memory chip stocks leading the decline.

Sector divergence was evident, with the memory track weakening across the board. Micron, Western Digital, and AMD saw significant declines; a few AI leaders like Nvidia maintained resilience. Financial and traditional consumer stocks also retreated, while only the energy sector showed slight resilience. The market is concerned about overly high earnings expectations for tech stocks in Q2, coupled with repeated inflation data, causing risk aversion among investors to rise.

Chinese concept stocks slightly outperformed the broader U.S. market, with the Nasdaq Golden Dragon Index narrowing its decline. Funds shifted to short-term bonds for safety, and U.S. Treasury yields edged up. In the short term, the market awaits guidance from inflation and employment data, and volatility in high-valuation tech sectors may persist.