Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, USA, on Thursday, July 16, 2026.
Michael Nagle | Bloomberg | Getty Images
Stocks fell Thursday as a selloff in technology stocks overshadowed a string of strong earnings reports.
S&P 500 Index lost 0.51% to close at 7,533.77, while Nasdaq Composite fell 1.47% to 25,881.95. The biggest tech companies have struggled with semiconductor weakness. Dow Jones Industrial Average losing 105.67 points, or 0.20%, to close at 52,552.97.
Chip stocks fell after Taiwan Semiconductor Plant posted an increase in its cost forecast, eclipsing its better-than-expected second-quarter report. The company expects capital spending to be between $60 billion and $64 billion this year, down from a previous forecast of $52 billion to $56 billion. The stock lost more than 2%.
VanEck Semiconductor ETF (SMH) down nearly 4%, helped by a drop of more than 5%. Arm Holdings. Shares Micron Technology And Advanced microdevices were also lower by more than 5% each. Broadcom there was a 5% discount. Shares of a company listed on a US stock exchange SK Hyniks fell more than 13%.
In other areas of technology shares Alphabet fell more than 4% as the company reportedly delayed the release of its most powerful AI model, known as Gemini 3.5 Pro. Other names for the Magnificent Seven Meta platforms, Nvidia And Amazon were also in the red.
However, earnings season gets off to a strong start this week. Of the 40 S&P 500 companies that have reported so far, more than 87% have beaten Wall Street estimates. The largest banks, considered leaders of economic activity, beat expectations for second-quarter profits earlier this week.
“Overall, when you look at returns across all caps, this is still a strong market,” said Patrick Ryan, chief investment strategist at Madison Investments.
The latest economic data continues to show that US consumers have held up in the face of rising price pressures. Jobless claims for the week ended July 11 came in at a seasonally adjusted 208,000, below the 218,000 expected by economists polled by Dow Jones. Retail sales met expectations, rising 0.2%.