NEW YORK, July 17, 2026, 16:07 EDT
- Preliminary closing values: S&P 500 ended at 7,463.93, a decline of 0.9%. Nasdaq closed at 25,554.54, falling 1.3%.
- The chip index is down nearly 17% in July, even though it has surged approximately 63% so far this year.
- Forecasts for S&P 500 second-quarter profit growth increased to 26.0% from 19.2% as of April 1.
U.S. stocks closed down on Friday, with the chip sector selloff extending to a wider risk-off move. The S&P 500 dropped 0.9% and the Nasdaq declined 1.3%.
The clearest indicator for investors was the difference between prices and profits. Shares declined as projected second-quarter earnings growth climbed to 26.0%.
The shift points to a reset in concentration rather than a full-scale earnings downturn. Chip shares now have sufficient influence in the index to counter gains in other sectors.
The chip sector’s increased weighting has altered the index’s dynamics. “Three or four years ago, it was 8%, and now it’s over 20%,” said Paul Nolte, senior wealth adviser at Murphy & Sylvest. Reuters
The difference is evident in the figures.
| Measure | Preliminary Friday reading | Comparison |
|---|---|---|
| S&P 500 | 7,463.93, falls 0.9% | Slides 1.5% this week |
| Nasdaq Composite | 25,554.54, slips 1.3% | Drops 2.8% this week |
| Dow industrials | 52,267.62, off 0.5% | Loses 0.7% this week |
| PHLX semiconductor index | Declines about 1.3% | Down roughly 17% in July; jumps around 63% in 2026 |
| S&P 500 Q2 earnings | Rises 26.0%, estimated | Climbs 19.2%, estimate as of April 1 |
Final closing numbers could be adjusted by index providers. Weekly changes reflect the difference between Friday’s initial results and July 10 closing levels. Earnings numbers are early estimates from analysts.
The semiconductor index dropped around 1.3% following an intraday loss of 5.7%. It moved into positive territory for a short period before renewed selling pressure appeared.
Nvidia NASDAQ:NVDA slipped roughly 1.7% approaching the close. Meta Platforms NASDAQ:META declined 2.8%, and Alphabet NASDAQ:GOOGL dropped 2.4%.
Disappointing outlooks weighed on sectors beyond semiconductors. Shares of Netflix NASDAQ:NFLX dropped approximately 7.8%, and Intuitive Surgical NASDAQ:ISRG was down 13.7% in late trade. Netflix projected lower earnings ahead, and Intuitive Surgical cautioned that insurance policy changes could postpone patient treatments.
Market breadth weakened further, with NYSE decliners outpacing advancers by a two-to-one margin. On the Nasdaq, new lows exceeded new highs 169 to 65.
Energy led gains as the sole advancing sector in the S&P 500. Brent crude climbed 4.6% to close at $88.10 amid mounting supply worries caused by the Iran conflict.
The yield on the 10-year Treasury slipped to 4.54% from 4.57% on Thursday, providing only modest relief.
Over the week, the Nasdaq slipped 2.8%. The S&P 500 declined by 1.5%, and the Dow dropped 0.7%.
The upcoming week will indicate if the pullback was primarily due to technical factors or reflects fundamental concerns. Alphabet’s results are set for Wednesday, with Intel NASDAQ:INTC, Texas Instruments NASDAQ:TXN and Tesla NASDAQ:TSLA also scheduled to announce earnings.
Alphabet’s AI investments, rather than just its revenue, will be at the center of investor attention. A reduction in capital expenditures could have effects throughout the AI supply chain, investment manager Kevin Mahn noted.
Risks remain balanced. Robust earnings might attract value-focused investors to semiconductors, while rising oil prices could rekindle concerns about inflation and higher interest rates.
At present, the earnings floor is holding. Investors are scrutinising valuations amid concentrated gains in AI-related stocks.
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