Western Digital and SanDisk shares fell sharply today after their earnings. South Korea's Kospi, which is heavily weighted toward memory-chip makers, fell 4.6%. By contrast, the S&P 500 and Nasdaq Composite were up 0.2% in early U.S. trading, while the semiconductor ETF and Nvidia were also higher. The selling did not spread across all technology.

U.S. second-quarter productivity rose at an annualized 1.4% while unit labor costs increased 1.3%. Initial jobless claims rose to 199,000, but the four-week average fell by 4,500. Productivity limited cost pressure; the labor market also showed no sudden deterioration ahead of Friday's employment report.

The day's key question is whether the losses in memory and storage stocks will remain contained. At SpaceX, the first large tranche of shares that had been locked up after the IPO became saleable today. The Hormuz agreement is still at the draft stage. Tomorrow's U.S. employment report will show whether this split spreads to interest rates and the broader market.

Key takeaways

  • Western Digital ($WDC) fell about 12.5% and SanDisk ($SNDK) 6.5%, while semiconductor ETF SMH ($SMH) rose 0.5% and Nvidia ($NVDA) gained 1.3%. The first-hour picture shows that the selling remained concentrated in a narrow group of companies.
  • QQQ ($QQQ), which tracks the Nasdaq 100, was about $715.09, down 0.3%. $708.50 is initial support; reclaiming $717 and then clearing $725 would strengthen technology's resilience.
  • SpaceX stock ($SPCX) held near $109.27 today after falling 13.6% on Wednesday. $105 is initial support and $114-$115 the main recovery zone; the supply pressure from newly saleable shares has not ended.
  • Brent rose to $80.78 and the U.S. 10-year Treasury yield to 4.64%. Iran and Oman say the agreement is in its final draft stage, but there is no signature and Hormuz traffic remains far below its pre-crisis level; the oil-driven risk has not disappeared.

What happened?

  • According to Associated Press (@AP), the S&P 500 fell 0.2% on Wednesday to 7,723.55, the Nasdaq Composite fell 0.8% to 26,363.44 and the Dow Jones rose 0.5% to a record 54,349.12. The S&P 500 and Nasdaq Composite turned up 0.2% this morning, so company-specific losses did not pull the indexes lower.
  • According to the U.S. Bureau of Labor Statistics, nonfarm labor productivity rose 1.4% in the second quarter, output 1.7% and hours worked 0.3%. The 1.3% rise in unit labor costs shows that productivity gains partly offset companies' wage pressure.
  • The U.S. Department of Labor said initial jobless claims rose to 199,000 in the week ended August 1. The four-week average fell to 198,750 while continuing claims rose by 24,000 to 1.801 million. Labor demand remains strong in initial claims, but people who lose jobs are finding it somewhat harder to find work again.
  • Kospi fell 4.6% to 6,296.38 in Asia; SK Hynix fell 10.4% and Samsung Electronics 6.3%. Western Digital and SanDisk were also sold sharply after earnings in the United States. Nvidia and SMH still rose, showing that investors are not putting the entire AI and chip chain in the same basket.
  • SpaceX fell 13.6% on Wednesday; today the first large tranche of shares locked up after the IPO became saleable. The stock was up slightly near $109.27 in early trading. The first reaction was positive, but the true effect of the new supply cannot be measured in one day's price.
  • Iran's Foreign Ministry said the arrangement with Oman for Hormuz was in its final draft stage. Data from Lloyd's List Intelligence, cited by Associated Press, show weekly crossings rising from 45 to 84, but still far below the typical pre-crisis level of more than 700. At least two vessels controlled by Greek companies were hit last week; physical normalization is still a long way off.
  • Tunç Şatıroğlu (@tuncsatiroglu) said technical signals in gold and silver had turned positive and expected strength in August. Spot gold rose about 0.4% to $4,266 today while silver ETF SLV fell about 0.7% to $55.66. The signal is positive, but the metals are not showing equal strength.

Market levels

Global risk and rates

  • Brent is about $80.78. Support is at $79 and $76, the directional threshold is $80 and the main resistance and risk area is $83-$85. Brent is back above $80; a move into $83-$85 would renew energy-driven inflation pressure and transportation costs.
  • The U.S. 10-year Treasury yield is 4.64%. Support is 4.60%, the directional threshold 4.70% and the main risk boundary 4.85%. As long as the 10-year yield stays below 4.70%, today's productivity data support growth stocks; above 4.70% would reduce that relief.

US indices

  • The S&P 500 closed Wednesday at 7,723.55 and was up 0.2% in early Thursday trading. Support is 7,700 and 7,600, initial resistance 7,750 and the continuation level 7,800. Holding above 7,700 would confirm that company-specific losses have not spread across the index.
  • QQQ is about $715.09. Support is $708.50 and $700, initial resistance $717 and the next confirmation level $725. Reclaiming $717 would reduce short-term pressure; below $708.50 would show that memory-stock selling has moved into the technology index.

Themes and ETFs

  • Western Digital is about $454.40 and SanDisk $1,261.68. Western Digital support is $407 and $400, with resistance at $458 and $480; SanDisk support is $1,164 and $1,150, with resistance at $1,280 and $1,350. There has been an intraday rebound, but a recovery in either stock is not yet confirmed.
  • SMH is about $572.99 and Nvidia $221.96. SMH support is $560 and $550, with resistance at $575 and $585; Nvidia support is $219 and $215, with resistance at $224-$225. As long as SMH stays above $560 and Nvidia above $219, the memory-stock loss has not spread to the entire chip group.
  • Software-company ETF IGV is about $98.29, down 3%, while IWM, which tracks small U.S. companies, is $300.39, up 0.2%. IGV support is $97 and the recovery threshold $101; IWM support is $299-$296 and resistance $303-$305. There is a clear split between chips and software.

Space and crypto

  • SpaceX is about $109.27. Support is $105 and $100, initial resistance $111 and the main recovery zone $114-$115. The number of shares that became saleable rose today; holding $105 would show that selling remains controlled, while below $100 would show deeper pressure.

Crypto and precious metals

  • Spot gold is about $4,266. Support is $4,230 and $4,200, with initial resistance at $4,304. Holding above $4,230 preserves the positive technical signal; a move in the U.S. 10-year yield above 4.70% is the most important risk to this picture.
  • Silver ETF SLV is about $55.66. Support is $55 and $53.80, with resistance at $56.10 and $56.75. Silver cannot be said to be strengthening alongside gold until it clears $56.10.
  • Bitcoin is about $64,409, Ether $1,907 and XRP $1.045. Bitcoin support is $62,000, initial confirmation $64,400 and resistance $65,800; Ether support is $1,890 and $1,850, with resistance at $1,925 and $1,970. XRP tested its $1.05 support; below $1.04 would increase weakness, while above $1.07 would be the first recovery signal.

Turkey

  • The BIST 100 is about 13,726.33, up 0.2%. Support is 13,600 and 13,500, with resistance at 13,800 and 13,900. The BIST rebound is not yet a breakout; holding above 13,800 would strengthen the move, while below 13,500 would give back a substantial part of Tuesday's rise.
  • Dollar/TL is about 47.60. Support is 47.50, initial resistance 47.70 and the risk boundary 48.00. As long as the exchange rate stays below 47.70, local cost pressure remains limited; above 48.00 would add risk to the BIST.

Red flags

  • If Western Digital falls below $407, SanDisk below $1,164, and SMH and Nvidia also lose $560 and $219 support, that would show that the narrow sell-off has spread across the sector.
  • If the U.S. 10-year yield rises above 4.70%, Brent above $83 and the S&P 500 below 7,700, growth and valuation pressure would rise at the same time.
  • If SpaceX loses $105 while trading volume rises, the supply pressure from newly saleable shares could deepen the post-earnings decline.
  • If Friday's employment and wage-growth numbers are very strong, yields could rise again; clear weakness would instead increase concern about growth and company earnings.
  • If the BIST 100 falls below 13,500 while dollar/TL rises above 47.70, the local-recovery thesis would weaken.

Calendar

  • August 7, 15:30 TRT: The U.S. July employment report will be released. Nonfarm payrolls, the unemployment rate and hourly earnings will be watched together; the result may determine whether the 10-year yield can stay below 4.70%.
  • August 12, 15:30 TRT: The U.S. July consumer inflation report will be released. Energy and services prices will show how much of the oil rise in recent months has reached consumers.
  • August 13, 15:30 TRT: The U.S. July producer inflation report will be released. Companies' input costs will show whether the moderate rise in unit labor costs today is genuinely limiting cost pressure on businesses.

My analysis

Today's price action shows that the market is repricing not the entire AI theme, but the memory and storage companies that had risen particularly quickly. As long as Nvidia, SMH, small caps and the main indexes hold up, this split is manageable; IGV's 3% loss also reminds us that investors remain selective within technology.

To read the macro data correctly, we need to look at productivity and labor costs together. With productivity up 1.4% and unit labor costs limited to 1.3%, the result is supportive for company earnings. But the rise in continuing claims means tomorrow's employment report should not be judged only by headline payrolls; the unemployment rate and wage growth matter too.

To treat the market's resilience as durable, support levels must hold first: the S&P 500 above 7,700, QQQ above $708.50, SMH above $560 and SpaceX above $105; Brent must stay below $83 and the 10-year yield below 4.70%. If several of these conditions deteriorate at once, today's selling in a few companies could spread across the market.

Sources

  • Associated Press, August 6 U.S. markets, SpaceX shares, Brent and Treasury yields: apnews.com
  • Associated Press, August 5 U.S. market close: apnews.com
  • Associated Press, August 6 Hormuz talks and vessel traffic: apnews.com
  • U.S. Bureau of Labor Statistics, second-quarter productivity and unit labor costs: bls.gov
  • U.S. Department of Labor, weekly jobless claims: dol.gov
  • U.S. Bureau of Labor Statistics, August 2026 release calendar: bls.gov
  • U.S. ETF, stock and crypto prices: alpaca.markets
  • Piyasa Detay, current BIST, currency, gold and crypto prices: piyasadetay.com
  • Bloomberg Television, Bloomberg Brief: youtu.be
  • CNBC Television, Market Open: youtu.be
  • Kanal Finans, Tunç Şatıroğlu: youtu.be

This is not investment advice. It is a research and monitoring note.