Mixed Session as Chipmaker Slump Offsets Gains in Health Care and Transportation

The S&P 500 Index ($SPX) (SPY) closed down 0.14%, the Dow Jones Industrial Average ($DOWI) (DIA) rose 0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell 0.96%. September E‑mini S&P futures (ESU26) were down 0.18% and September E‑mini Nasdaq futures (NQU26) slipped 1.02%.

Stock indexes finished mixed, with the Dow posting a one‑week high while the Nasdaq 100 hit a one‑week low. Weakness in chipmakers and AI‑infrastructure stocks weighed on the broader market, echoing a sharp -6% drop in South Korea’s Kospi Index. The Kospi decline was driven by heavy losses in SK Hynix and Samsung Electronics.

Most chipmaking‑related equities traded lower, though software laggards gained as investors rotated into underperforming sectors. Strength in health‑care names—UnitedHealth Group (+4%) and Merck & Co (+2%)—helped keep the Dow in positive territory.

U.S. economic reports were largely positive but hawkish. The 10‑year Treasury yield rose 3 basis points to 4.58%. Initial weekly unemployment claims fell by 8,000 to a 10‑week low of 208,000, beating expectations. June retail sales rose 0.2% month‑over‑month as forecast, while June retail sales ex‑autos fell 0.2% m/m, weaker than the -0.1% expected. The July Philadelphia Fed business outlook surged 31.1 points to a 4.5‑year high of 41.4. Pending home sales dropped 5.4% m/m—the steepest decline in six months—while the NAHB housing market index unexpectedly fell two points to 34.

Geopolitical tensions lifted crude oil prices. WTI (CLQ26) gained nearly 1% after the United States conducted fresh airstrikes on Iran and struck a sanctioned Iranian oil tanker in the Persian Gulf. Iran retaliated by firing missiles at U.S. bases in Kuwait and Jordan, with Jordan intercepting eight missiles. President Trump vowed to intensify the bombardment until Iran halts attacks in the Strait of Hormuz and opens the waterway. The Wall Street Journal reported that Trump is considering expanded military operations, including the seizure of Kharg Island, Iran’s main oil export terminal. RBC Capital noted that the seven‑day moving average of oil flows through the strait has plummeted to 3.9 million bpd from 8.5 million bpd before the ceasefire collapsed.

Earnings outlook remains a bullish driver. Bloomberg Intelligence forecasts Q2 earnings growth of about 23%, near Q1’s +30% surge. AI spending is expected to dominate, with AI‑infrastructure stocks projected to contribute roughly 60% of S&P 500 earnings‑per‑share growth in Q2.

Markets are pricing a 12% chance of a 25‑bp rate hike at the next FOMC meeting on July 28‑29.

Overseas equities declined. The Euro Stoxx 50 fell to a one‑week low, down 0.29%. China’s Shanghai Composite hit a 3.5‑month low, closing down 1.85%, while Japan’s Nikkei‑225 closed lower by 2.79%.

Interest Rates

September 10‑year T‑notes (ZNU6) were down 9 ticks, and the 10‑year yield rose 3.8 bp to 4.586%. Stronger‑than‑expected data—lower jobless claims and a higher Philadelphia Fed reading—along with higher crude oil prices, kept yields under pressure. European government bond yields also rose. The 10‑year German bund climbed 2.3 bp to 3.145%, reaching a 1.75‑month high, while the 10‑year UK gilt rose 4.2 bp to 4.980%. U.K. May GDP expanded 0.1% m/m, exceeding expectations, and U.K. May manufacturing production unexpectedly rose 0.1% m/m after a projected decline.

Swaps indicate a 7% probability of a 25‑bp ECB rate hike at its next policy meeting on July 23.

U.S. Stock Movers

Chipmakers and AI‑infrastructure equities slid, dragging the broader market. The iShares Semiconductor ETF (SOXX) fell more than 2%. Notable losers included SanDisk (SNDK) –8%, ARM Holdings Plc (ARM) –7%, Marvel Technology (MRVL) –6%, Western Digital (WDC) –5%, Seagate Technology (STX) –4%, and megacap names AMD, Microchip Technology, Intel, Micron Technology, Qualcomm and Texas Instruments each down more than 3%.

Mining stocks also declined as gold, silver and copper prices fell sharply. Coeur Mining (CDE) and Hecla Mining (HL) dropped over 5%, while Freeport McMoran, Newmont, Anglogold Ashanti and Barrick Mining each fell more than 3%. Southern Copper slipped about 1%.

Cryptocurrency‑exposed equities weakened with Bitcoin lower. Riot Platforms (RIOT) and Galaxy Digital (GLXY) fell over 6%, MARA Holdings (MARA) dropped more than 5%, Circle Internet (CRCL) fell over 4%, Strategy (MSTR) slipped 2%, and Coinbase Global (COIN) was down just over 1%.

Trucking companies rallied on strong earnings and revenue guidance. JB Hunt Transport Services (JBHT) surged more than 5% after reporting Q2 revenue of $3.50 billion, above the $3.25 billion consensus. ArcBest (ARCB) also rose more than 5%, and Saia, XPO, FedEx Freight Holding, Old Dominion Freight Line, Marten Transport, Knight‑Swift Transportation and CH Robinson each gained 3‑5%. United Parcel Service (UPS) added over 2%.

Ast SpaceMobile (ASTS) fell more than 14% after announcing a $1 billion convertible senior note offering. GE Aerospace (GE) declined over 4% despite raising its adjusted EPS outlook; TD Cowen cautioned the increase “may not be good enough.” United Airlines Holdings (UAL) slipped 1% after forecasting full‑year adjusted EPS of $9‑$11, below the consensus midpoint.

Intra‑day gainers were led by Abbott Laboratories (ABT) – up over 11% after raising its full‑year adjusted EPS forecast to $5.45‑$5.60; UnitedHealth Group (UNH) rose over 4% following a strong Q2 EPS beat and upward guidance; Merck & Co (MRK) added more than 3% after USDA approval of its LDL‑cholesterol medication Lipfendra; AeroVironment (AVAV) gained over 3% on a Raymond James upgrade; Rocket Cos (RKT) rose over 1% after a Morgan Stanley upgrade.

Earnings Reports (July 16 2026)

Abbott Laboratories (ABT), Alcoa Corp (AA), Citizens Financial Group Inc (CFG), Commerce Bancshares Inc/MO (CBSH), FNB Corp/PA (FNB), General Electric Co (GE), Intuitive Surgical Inc (ISRG), Netflix Inc (NFLX), Prologis Inc (PLD), State Street Corp (STT), UnitedHealth Group Inc (UNH), US Bancorp (USB)

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