The Prime Daily: 28 July 2026

Authored By Prime Research | Published at: Jul 28, 2026 08:44 AM IST

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Memory Chip Meltdown – China’s CXMT Debut Triggers Global Tech Selloff

Wall Street closed mixed Monday. The Dow added 0.5%, the S&P 500 was flat, and the Nasdaq slipped 0.2% as chip weakness offset gains elsewhere. Nvidia fell 5%, SanDisk plunged 11%, and the Philadelphia Semiconductor Index dropped 4.2%. Micron fell 5%.

Enterprise software and AI-adjacent names rotated higher. Salesforce jumped 7%, Microsoft rose 3%, and Palantir gained 7% to $131 ( still down 26% YTD despite raising FY2026 revenue guidance to 71% growth).

The KOSPI tumbled as the global chip rout deepened, with U.S.-Korea tech correlation at its highest since 2021.

SK Hynix plunged more than 10%, while Samsung Electronics fell over 8%.

The selloff was triggered by ChangXin Memory Technologies’ (CXMT) blockbuster Shanghai Star Market debut shares surged roughly 500%, valuing China’s largest DRAM maker at $540 billion.

DRAM chips supply temporary memory for smartphones, PCs, servers, and AI systems. The debut, paired with progress in domestic chipmaking equipment, stoked fears that Chinese memory chips could reach top-tier customers like Apple sooner than expected, triggering sector-wide selling despite strong YTD gains across the group.

S&P 500 futures have extended losses in Asian trading today as investors positioned for a heavy week of mega-cap earnings and the Fed’s rate decision.

Trump confirmed ongoing talks with Tehran, though shipping through the Strait of Hormuz remains well below normal levels.

Porsche announced 5,000 additional job cuts following a sales collapse in China.

Indian rupee appreciated sharply by 65 paise to close at 95.91 yesterday, emerging as Asia’s top performer, supported by favourable global cues including a sharp drop in crude oil prices, a softer dollar index, and renewed risk-on sentiment.

Nifty snapped its five-session losing streak yesterday, rallying 228 points to close at 23,995.

From Friday’s low of 23,606, Nifty has recovered more than 400 points. The recent swing low of 23,606 is an important support, as it aligns with the rising trendline connecting the April swing low of 22,182 and the June swing low of 23,070.

For momentum to strengthen further, a decisive close above 24,200 is essential. On the downside, immediate support is seen at 23,800.

Indian markets are set to open lower today, as plunging Asian markets weigh on sentiment.

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