S&P 500 Falls 0.2% as Chip Stocks Sink on China Lithography Report
Updated
Updated · CNBC · Jul 26
S&P 500 Falls 0.2% as Chip Stocks Sink on China Lithography Report
2 articles · Updated · CNBC · Jul 26
Summary
The S&P 500 slipped 0.2% and the Nasdaq lost 0.4%, while the Dow rose 107 points as a semiconductor selloff erased an earlier lift from cheaper oil.
The VanEck Semiconductor ETF fell more than 3%, with AMD down 7%, ASML off over 7%, Teradyne losing 5.9% and Micron shedding 4% after a report that China is developing deep-ultraviolet lithography machines.
Investor unease also widened beyond the China news, with portfolio managers citing fierce competition and signs the AI trade is deflating after stocks pulled back from late-June record highs.
Brent crude dropped 6.8% to about $90.25 a barrel and WTI fell 6.1% to $83.83 as Middle East tensions cooled, but that support was not enough to offset tech pressure.
This week now turns on earnings from Amazon, Apple, Meta and Microsoft, plus Wednesday's Fed decision, both seen as key tests of AI spending appetite and rate expectations.