{"id":4733,"date":"2026-07-18T00:45:24","date_gmt":"2026-07-18T00:45:24","guid":{"rendered":"https:\/\/horizonindexadvisors.com\/index.php\/2026\/07\/18\/dow-falls-nearly-400-points-as-chip-selloff-deepens-wall-street-posts-weekly-loss\/"},"modified":"2026-07-18T00:45:24","modified_gmt":"2026-07-18T00:45:24","slug":"dow-falls-nearly-400-points-as-chip-selloff-deepens-wall-street-posts-weekly-loss","status":"publish","type":"post","link":"https:\/\/horizonindexadvisors.com\/index.php\/2026\/07\/18\/dow-falls-nearly-400-points-as-chip-selloff-deepens-wall-street-posts-weekly-loss\/","title":{"rendered":"Dow falls nearly 400 points as chip selloff deepens, Wall Street posts weekly loss"},"content":{"rendered":"
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US stocks closed lower on Friday, capping a weak week for Wall Street as a deepening selloff in semiconductor stocks and renewed concerns over artificial intelligence spending weighed on investor sentiment. <\/p>\n

The decline came despite a strong start to the second-quarter earnings season, with rising geopolitical tensions in the Middle East adding to market uncertainty.<\/p>\n

The Dow Jones Industrial Average fell 394 points, or 0.75%, to close at 52,158.96. <\/p>\n

The S&P 500 declined 1.01% to 7,457.78, while the Nasdaq Composite dropped 1.40% to 25,511.12.<\/p>\n

For the week, the S&P 500 lost more than 1%, the Nasdaq fell over 2%, and the Dow slipped nearly 1%.<\/p>\n

Semiconductor stocks lead market lower<\/h2>\n

Technology shares remained under pressure as investors continued to reassess the sustainability of the artificial intelligence investment boom that has fueled markets over the past year.<\/p>\n

The VanEck Semiconductor ETF (SMH) fell more than 8% for the week, marking its third weekly decline in four weeks. <\/p>\n

The Philadelphia Semiconductor Index recorded its steepest weekly loss in more than a year and has fallen nearly 18% so far in July, although it remains up about 65% year to date.<\/p>\n

The latest pressure followed the launch of a new artificial intelligence model by Chinese startup Moonshot AI<\/a>, which claimed its Kimi K3 model narrows the gap with leading offerings from US companies. <\/p>\n

The announcement added to concerns that increasing competition could reduce future demand for advanced AI chips and moderate the pace of technology spending.<\/p>\n

The weakness in chipmakers eventually spread across the broader market as investors trimmed exposure to AI-related stocks.<\/p>\n

Netflix was also among the session’s notable decliners<\/a>, falling more than 6% after its earnings outlook failed to reassure investors about the sustainability of its growth.<\/p>\n

Uber Technologies also declined after announcing its planned acquisition of Germany’s Delivery Hero in a deal valued at nearly $15 billion. <\/p>\n

Shares of Intuitive Surgical also moved lower<\/a> after the company maintained its procedure-growth forecast while warning that insurance-plan changes may be delaying patient care.<\/p>\n

Earnings remain strong despite market weakness<\/h2>\n

Although equity markets finished the week lower, the second-quarter earnings season has started on a positive note.<\/p>\n

According to LSEG, 49 S&P 500 companies have reported results so far, with 90% exceeding analysts’ expectations.<\/p>\n

Analysts now expect aggregate second-quarter S&P 500 earnings growth of 26%, up from projections of 19.2% at the beginning of April. Strong bank earnings earlier in the reporting season have helped lift overall expectations.<\/p>\n

Economic data released on Friday presented a mixed picture. <\/p>\n

Consumer sentiment improved to a five-month high in July, while industrial production edged up 0.1%. However, single-family housing starts and building permits both declined.<\/p>\n

Middle East tensions lift energy stocks and oil prices<\/h2>\n

Investors also monitored escalating geopolitical tensions after the United States and Iran continued military strikes across the Middle East.<\/p>\n

The renewed conflict has disrupted energy flows through the Strait of Hormuz, a key global oil shipping route, supporting higher crude prices.<\/p>\n

US West Texas Intermediate crude traded above $81 per barrel, while Brent crude remained above $86.<\/p>\n

The rise in oil prices helped energy stocks outperform the broader market, making the sector the strongest performer within the S&P 500 during Friday’s session.<\/p>\n

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The post Dow falls nearly 400 points as chip selloff deepens, Wall Street posts weekly loss<\/a> appeared first on Invezz<\/a><\/p>\n

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