S&P 500, Nasdaq fall as chips extend losses; earnings and data in focus

The S&P 500 and Nasdaq declined as semiconductor stocks extended losses, with the Philadelphia SE Semiconductor index down 3.5% and memory-chip makers like SanDisk (-10%), Western Digital (-8%), and Seagate (-7.5%) leading the selloff. Despite strong Q2 earnings from companies like TSMC, Abbott (+12%), and UnitedHealth (+4.3%), the tech-led drag was partially cushioned by healthcare (+2.2%), consumer staples, and real estate sectors.

Why it matters: Investors found some support from June retail sales data showing underlying consumer spending resilience and falling unemployment claims, with Capital Economics forecasting Fed rate hikes later this year.