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Wall St ends lower for the day and week as chip selloff broadens | Reuters

SUMMARY
Indexes down: Dow 0.77%, S&P 500 1.01%, Nasdaq 1.40%Netflix falls as earnings forecast disappointsIntuitive Surgical slides on insurance coverage concernsFlaring Middle East tensions send energy stocks higher

NEW YORK, July 17 (Reuters) - Wall Street extended its decline on Friday as a pullback on stocks associated with the AI boom, which has driven many of the gains so far this year, morphed into a larger risk-off sentiment.

Semiconductor shares, ‌which have led the broader market's move in recent sessions, initially led the selloff, which broadened as the session progressed.

All three major U.S. stock indexes closed lower on the day and posted weekly losses.

The Philadelphia SE Semiconductor Index (.SOX), opens new tab logged its steepest weekly loss in over a year, and has tumbled over 18% so far in July. Even so, the index remains up nearly 65% year-to-date, compared with the S&P 500's nearly 9% gain over the same time frame.

The SOX closed 20.2% below its June 22 record closing high, confirming the index entered a bear market on that date.

Some investors in the artificial intelligence space have begun ⁠positioning for a slowdown in the nearly trillion-dollar spending boom, with some active managers already scaling back their exposure, according to a Reuters analysis...

Among the Magnificent Seven group of AI-related megacaps, all but Apple (AAPL.O), opens new tab dipped, with Meta (META.O), opens new tab and Alphabet (GOOGL.O), opens new tab suffering the worst of it, down 2.7% and 3.2%, respectively...

Among the major sectors of the S&P 500, communication services (.SPLRCL), opens new tab and consumer discretionary (.SPLRCD), opens new tab fell the most, while energy stocks (.SPNY), opens new tab were the sole gainers, benefiting from spiking crude prices amid signs of escalating hostilities in the Iran war.

Q2 EARNINGS SEASON GETS OFF TO AN UPBEAT START

Second-quarter ‌earnings season ⁠is still in its early days, with 49 of the companies in the S&P 500 having reported.
Of those, 90% have delivered better-than-expected results, according to LSEG.

Analysts now see year-on-year S&P 500 earnings growth of 26.0%, in aggregate, up from the 19.2% expectations as of April 1, per LSEG.

Netflix (NFLX.O), opens new tab tumbled 7.3% after ⁠the company's weaker-than-expected earnings forecast, raising doubts about the sustainability of the content growth momentum.

Uber Technologies (UBER.N), opens new tab dropped 2.1% after the rideshare app announced it would acquire Germany's Delivery Hero (DHER.DE), opens new tab in a deal worth nearly $15 billion.
Intuitive Surgical (ISRG.O), opens new tab shares slid 14.2% after the medical device maker kept its da Vinci procedure growth forecast unchanged and warned insurance-plan changes may be delaying patient care.

On the economic front, ⁠consumer sentiment increased to a five-month high in July, but single-family housing starts and building permits dipped, and industrial output increased by a meager 0.1%

Declining issues outnumbered advancers by a 1.94-to-1 ratio on the New York Stock Exchange. There were 258 new highs and 180 new lows on the NYSE.
On the Nasdaq, 1,717 stocks rose and 3,019 ⁠fell as declining issues outnumbered advancers by a 1.76-to-1 ratio.
The S&P 500 posted 48 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 75 new highs and 190 new lows.
Volume on U.S. exchanges was 17.55 billion shares, compared with the 20.87 billion average for the full session over the last 20 trading days

https://www.reuters.com/business/wall-st-futures-fall-chip-selloff-gathers-pace-netflix-tumbles-2026-07-17/

Wall St ends lower for the day and week as chip selloff broadens
https://www.straitstimes.com/business/companies-markets/wall-st-ends-lower-for-the-day-and-week-as-chip-selloff-broadens

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