empty
 
 

2026.07.0120:17:56UTC+00US Stocks Drop as Chipmakers Sink

US equity indices finished lower on Wednesday as investors reassessed how sustainable the recent AI-driven rally may be. The S&P 500 slipped 0.2%, while the Nasdaq 100 fell 1.5%, dragged down by a sharp selloff in semiconductor stocks. Major chipmakers led the decline amid persistent concerns that AI-related investments have become overstretched. Micron Technology tumbled 10.6%, AMD dropped 6.9%, and Intel slid 9%.

In contrast, Meta jumped 8.8% after unveiling plans to build a cloud business to monetize its excess AI computing capacity. Other mega-cap “Magnificent Seven” hyperscalers extended their rebound, with Microsoft up 3%, Amazon advancing 1.4%, and Alphabet gaining 1.1%. The Dow Jones Industrial Average ended roughly unchanged, supported by strength in non-technology sectors.

On the macro front, data showed US manufacturing activity expanded for a sixth consecutive month, while input cost pressures eased. In addition, Fed Chairman Warsh indicated that inflation risks are moderating, reducing the need for an immediate, more hawkish policy response from the Federal Reserve.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $4000 more!
    In July we raffle $4000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback