NEW YORK, July 7, 2026, 16:02 (EDT)
- S&P 500 dropped 0.27%. Nasdaq gave up 0.64%. Dow edged down 0.27%.
- PHLX chip index dropped 4.4%. Its gain for 2026 is now at 74%.
- Most sectors in the S&P 500 ended higher, with advancing stocks outnumbering decliners by about 1.4 to 1.
- Energy gained 1.6% with oil up on news of attacks close to the Strait of Hormuz.
U.S. stocks closed lower Tuesday, dragged by a 4.4% slide in the PHLX semiconductor index that weighed on both the S&P 500 and Nasdaq. Most S&P 500 sectors actually rose, and advancers outpaced decliners by 1.4-to-1 within the benchmark index. The session had the feel of a rotation out of AI names rather than a broad drop for equities.
| Market gauge | Close / move |
|---|---|
| S&P 500 | 7,516.76, fell 0.27% |
| Nasdaq Composite | 25,954.35, slipped 0.64% |
| Dow Jones Industrial Average | 52,915.17, off 0.27% |
| PHLX semiconductor index | lost 4.4% |
| S&P 500 energy sector | added 1.6% |
Samsung Electronics KRX:005930 said it expects second-quarter sales around 171 trillion won and operating profit near 89.4 trillion won. Even with those big numbers, chip buyers didn’t stick around. Micron Technology NASDAQ:MU lost more than 5% and SanDisk NASDAQ:SNDK slid almost 8%.
Zachary Hill, who runs portfolio management at Horizon Investments, said, “The story of today is the story of the last few weeks,” as money keeps moving after the rally in AI buildout names. Hill said expectations for that group are now “almost impossible to beat.” Reuters
Kathleen Brooks, research director at XTB, said Samsung posting a record quarter stoked concerns that “the AI chip sales boom cannot be sustained.” That remains the main risk for U.S. equity funds. Earnings can stay strong, but valuation support looks weaker if beats trigger selling. Reuters
| AI-linked pressure point | Reported data |
|---|---|
| Samsung Q2 operating profit guidance | 89.4 trillion won |
| Samsung Q2 sales guidance | 171 trillion won |
| Micron Technology NASDAQ:MU | fell more than 5% |
| SanDisk NASDAQ:SNDK | dropped nearly 8% |
| PHLX chip index 2026 gain after Tuesday fall | up 74% |
China was in focus during the chip slide. Reuters said DeepSeek is working on its own AI inference chip, which could mean less need for Nvidia NASDAQ:NVDA and Huawei parts. Richard Windsor at Radio Free Mobile said, “Nvidia is at zero in China and staying there.” The Reuters headline just added to the negative tone for chip stocks. Reuters
The Dow set a new record earlier today but finished down, weighed by Caterpillar NYSE:CAT and Goldman Sachs NYSE:GS losses. The reversal pointed to narrow tolerance for misses among large stocks, with underlying market breadth holding up better.
SpaceX NASDAQ:SPCX dropped around 5% in its first session after joining the Nasdaq 100. The company was added to the index less than a month after it listed on June 12, making it one of the quickest moves into the benchmark. J.P. Morgan had forecast $4.3 billion in passive inflows on the inclusion. “There’s nervousness about expectations being too high,” said Mark Hackett, chief market strategist at Nationwide. Reuters
| Single-stock move | Driver |
|---|---|
| SpaceX NASDAQ:SPCX slipped about 5% | Nasdaq 100 inclusion came as tech sold off |
| Fiserv NASDAQ:FISV gained 2.4% | Talks on selling debit network surfaced |
| Caterpillar NYSE:CAT fell | Pulled the Dow down |
| Goldman Sachs NYSE:GS fell | Pulled the Dow down |
Fiserv NASDAQ:FISV gained 2.4% after news that it talked with U.S. banks about selling its payments infrastructure business, which processes debit-card transactions. JPMorgan Chase NYSE:JPM, Bank of America NYSE:BAC, Wells Fargo NYSE:WFC, and PNC Financial Services Group NYSE:PNC all discussed a possible deal, Reuters said. No agreement has been made.
Energy ticked higher, offsetting some losses in tech. The S&P 500’s energy sector climbed 1.6% with crude oil up after reports of attacks on ships near the Strait of Hormuz. U.S. crude traded 2.83% higher at $70.49 a barrel, Brent added 3.03% to $74.17, according to Reuters.
U.S. rates pushed higher, not helping stocks. The 10-year Treasury yield was last up 4.41 basis points at 4.523% before traders got the latest Fed minutes, the first under Chair Kevin Warsh. The minutes follow a session where big AI names fell and the rest of the market looked stronger than what the index close showed.
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