NEW YORK, July 17, 2026, 12:07 p.m. EDT — U.S. stock trading opened with declines, as a sharp selloff in chipmakers fueled a broad rotation from growth to value shares.
- The Nasdaq dropped over 1%, as the Dow remained little changed.
- The chip index was last down 22% from its record close on June 22.
- Growth funds recorded outflows of $7.18 billion, whereas value funds saw inflows totaling $3 billion.
U.S. equities declined on Friday, with a sharper drop in chip stocks weighing on the Nasdaq. The Dow hovered around the flatline.
The gap carries more weight than the overall drop. Selling is still focused on heavily traded growth sectors, with value buying continuing.
Weekly fund data aligns with this assessment. Growth funds posted $7.18 billion in outflows, while value funds saw $3 billion in inflows. The resulting gap of $10.18 billion was more than double the net equity outflow of $4.8 billion.
That suggests rotation rather than capitulation.
Most recent displayed quotes appear below. Feed timing may differ.
| Instrument | Level or price | Change | Quote time, EDT |
|---|---|---|---|
| S&P 500 | 7,478.29 | down 0.74% | 12:03 p.m. |
| Nasdaq Composite | 25,529.73 | down 1.36% | 11:37 a.m. |
| Dow Jones Industrial Average | 52,502.38 | down 0.10% | 11:58 a.m. |
| Nvidia NASDAQ:NVDA | $204.75 | down 1.28% | 11:52 a.m. |
| Netflix NASDAQ:NFLX | $68.70 | down 7.61% | 11:52 a.m. |
| Travelers NYSE:TRV | $364.78 | up 7.98% | 11:52 a.m. |
Stock prices were recorded at about 11:52 a.m. EDT. Index pages showed their respective display times.
The PHLX Semiconductor Index ended Friday 22% under its June 22 record close. The index dropped 4.6% on Friday and slid over 12.8% for the week.
“It does feel very much a chip stock-driven move,” said Fiona Cincotta, senior markets analyst at City Index. Reuters
Netflix NASDAQ:NFLX dropped 7.6% after its third-quarter outlook came in below expectations. The company forecast $12.86 billion in revenue and diluted earnings of 82 cents. Analysts had predicted $13 billion in revenue and 84 cents in earnings.
Travelers NYSE:TRV jumped 8.0% after posting adjusted earnings of $10.04 per share, surpassing the consensus forecast of $5.42. The result was fueled by reduced catastrophe losses and increased investment income.
Bond funds attracted $9.89 billion, marking the 13th consecutive week of inflows, lending a defensive tilt to the ongoing equity rotation.
The VIX increased 9% to 18.24 by 11:06 a.m. Oil climbed 2.7% to $81.09. Market stress heightened, but panic remained absent.
Market breadth is the immediate focus for investors. Value buying faces another challenge if AI-linked leaders drop again.
Risks are still heightened. New tensions between the U.S. and Iran may push oil prices and inflation higher. Upcoming earnings from Alphabet NASDAQ:GOOGL and Intel NASDAQ:INTC next week could accelerate losses if the companies’ AI spending or outlook fall short of hopes.
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