US Stocks Fall on Chipmakers Selloff

2026-07-07 20:06 By Isabela Couto 1 min. read

US stock indices closed lower on Tuesday amid a selloff in chipmakers.

The S&P 500 fell 0.4%, the Nasdaq 100 dropped 1.8%, and the Dow Jones lost 131 points, pulling back from a record high.

Semiconductor stocks came under pressure as investors questioned whether AI hyperscalers can justify elevated infrastructure spending.

Samsung's 19-fold surge in quarterly profit failed to support market sentiment, which came under renewed pressure following reports that China's DeepSeek is developing its own AI chip.

Broadcom fell 0.8%, Micron lost 4.7%, AMD retreated 6.5%, and Intel slumped 9.7%.

Nvidia on the other hand, added 0.7%.

Higher bond yields weighed on broader markets after attacks on tankers in the Strait of Hormuz renewed concerns over energy-driven inflation.

Visa fell 1.4%, while Caterpillar lost 3.1%.



News Stream
The Dow Jones Index Closes 0.25% Lower
The Dow Jones Index dropped 131 points or 0.25 percent on Tuesday to close at 52925 points. Losses were led by Caterpillar (-3.14%), Honeywell International (-2.62%) and Sherwin-Williams (-1.87%). Offsetting the fall, top gainers were Chevron (3.50%), J&J (3.09%) and Salesforce (3.04%).
2026-07-07
US Stocks Fall on Chipmakers Selloff
US stock indices closed lower on Tuesday amid a selloff in chipmakers. The S&P 500 fell 0.4%, the Nasdaq 100 dropped 1.8%, and the Dow Jones lost 131 points, pulling back from a record high. Semiconductor stocks came under pressure as investors questioned whether AI hyperscalers can justify elevated infrastructure spending. Samsung's 19-fold surge in quarterly profit failed to support market sentiment, which came under renewed pressure following reports that China's DeepSeek is developing its own AI chip. Broadcom fell 0.8%, Micron lost 4.7%, AMD retreated 6.5%, and Intel slumped 9.7%. Nvidia on the other hand, added 0.7%. Higher bond yields weighed on broader markets after attacks on tankers in the Strait of Hormuz renewed concerns over energy-driven inflation. Visa fell 1.4%, while Caterpillar lost 3.1%.
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US Equities Retreat
US stock indices retreated on Tuesday amid losses for the heavyweight chip sector and fresh deterioration in the macroeconomic backdrop. The S&P 500 fell 0.7%, the Nasdaq 100 tanked 2.7%, while the Dow pulled back from a record high reached in morning exchanges. Memory producers sank even though Samsung posted a 19-fold surge in profit last quarter, as markets grow increasingly skeptical on whether AI hyperscalers can justify elevated levels of capital expenditure on infrastructure. Micron, Sandisk, and Applied Materials lost between 8%-10%. Consistently, SpaceX dropped 6% amid its inclusion in the Nasdaq 100. On top of that, Nvidia fell 1.5% and AMD slid 8% on reports that China's Deepseek is developing its own AI chip. In turn, broader sectors were pressured by higher bond yields after strikes on tankers in the Strait of Hormuz rekindled worries of energy inflation. Caterpillar, Deere, and GE Vernovia lost between 5% and 10%.
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