New York, USA — Ekhbary News Agency
The S&P 500 index faced headwinds on Thursday, struggling to advance despite a robust start to earnings season, as a significant downturn in chip stocks weighed heavily on equities. The broad market index registered minimal change, while the tech-heavy Nasdaq Composite shed 0.5%, reflecting persistent weakness across semiconductor firms. In contrast, the Dow Jones Industrial Average climbed 105 points, or 0.2%, primarily driven by a more than 6% surge in UnitedHealth shares, which comfortably surpassed earnings expectations.
Semiconductor Slump Overshadows Positive Reports
The semiconductor sector experienced considerable pressure, with Taiwan Semiconductor's stock declining 1% after the company increased its capital expenditure forecast for the year to between $60 billion and $64 billion, up from a prior range of $52 billion to $56 billion. This revised outlook overshadowed an otherwise better-than-expected second-quarter report. The VanEck Semiconductor ETF (SMH) slid over 2%, led by a sharp 6% drop in Arm Holdings. Shares of Micron Technology, Advanced Micro Devices, Broadcom, and U.S.-listed SK Hynix each fell by more than 2% to 3%.
Read Also
- Global Oil Market Faces Intensifying Supply Crunch Amid Russian, Iranian Pressures
- Financial Adviser's Basic Knowledge Gap Raises Client Professionalism Concerns
- IRS Tax Liens Surge 36% Since 2022, Threatening US Taxpayers
- US States Intensify Competition for Skilled Workforce Amid Economic Shifts
- Senator Rounds Praises Fed Chair Warsh's Inflation Focus, Independence Stance
Economic Data Shows Resilience Amid Global Market Shifts
Despite the tech sector's struggles, broader economic indicators presented a mixed, yet largely positive, picture. Retail sales for the period met expectations with a 0.2% increase, and jobless claims for the week ending July 11 came in lower than anticipated at 208,000. All things considered, earnings season continues to show corporate strength, with over 87% of the 40 S&P 500 companies reporting so far exceeding expectations. Meanwhile, South Korean regulators are reversing previous approvals for single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix, citing concerns over market volatility. The benchmark Kospi index plunged 6.4% on Thursday, entering a bear market after the Bank of Korea's first interest rate hike since January 2023.
