Micron Falls in Sympathy with SK Hynix; Alibaba Rises 4.2%
Alina Collins
Tech stocks broadly rose in Monday's pre-market with software leading, but memory chips bucked the trend — Micron fell 3.6% tracking an SK Hynix sell-off; Alibaba gained 4.2% on a new AI model launch, while pharma split sharply on merger talk.
Why did memory chips suddenly swim against the tide?
South Korea's two memory giants, SK Hynix and Samsung Electronics, saw heavy selling. SK Hynix's ADR — its U.S.-listed depositary receipt — dropped 3.2% in sympathy.
Micron Technology, America's leading memory chipmaker, fell 3.6% pre-market, dragging the broader memory sector down.
This means → the Korean sell-off transmitted directly to U.S. names, making memory the clearest headwind pocket within tech on the day.
What is driving the software rally?
Cybersecurity led the charge: Palo Alto Networks rose 4.1% and CrowdStrike gained 3.6%, powering the software-security group.
Palantir climbed 3.1% ahead of its Q2 earnings report, due after the close. The market is front-running the result.
In plain terms = capital is rotating from hardware into software, with security names commanding the highest premium; Palantir's after-hours print is the day's biggest verification point.
What are Alibaba and the pharma sector each trading on?
Alibaba rose 4.2% pre-market. The catalyst: the company released a new AI model, Qwen 3.8-Max, which the market read as another step-up in AI capability.
Pharma split unusually wide. The Financial Times reported that Bristol-Myers Squibb and AstraZeneca had held merger talks — the news sent Bristol-Myers up 5.7% while AstraZeneca's ADR fell 5.6%.
This means → the market sees the potential deal as favorable to the acquirer (Bristol-Myers) and insufficiently valued for the target (AstraZeneca). Neither company has formally confirmed the discussions.
What other notable movers stand out?
Ferguson Enterprises surged 8.3% pre-market after S&P Dow Jones Indices announced it will join the S&P 500 on August 5, replacing Electronic Arts.
In plain terms = inclusion in the S&P 500 forces every fund tracking the index to buy the stock, creating a wave of passive inflows in the near term.
Trump said he would restart negotiations with Iran, boosting hopes for a Middle East ceasefire — one macro backdrop behind the broader tech rally on the day.
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