AI chip stock selloff deepens as profit-taking and rate hike fears hit semiconductor sector
AI chip stocks continued sliding on Friday with TSMC down over 3% despite beating earnings, as its higher-than-forecast capex plans spooked investors. The SMH semiconductor ETF has dropped 9.5% over the past month, with Nvidia falling 2.2%, Applied Materials tumbling 5.5%, and AMD down over 1%.
Why it matters: Analysts attribute the selloff to profit-taking after a prolonged run-up and growing jitters about AI investment costs, compounded by a 52% market-implied probability of a September interest rate hike.
AI Chip Stocks Slide as TSMC Capex Plans Spark Profit-Taking and AI Skepticism
Shares of AI chipmakers continued falling on July 17 as the SMH semiconductor index dropped 9.5% over the past month, with Applied Materials tumbling 5.5%, Sandisk falling nearly 4%, and Nvidia declining 2.2%. The selloff was triggered in part by TSMC's earnings report, which beat expectations but announced higher capital expenditure plans than previously forecast, weighing on the sector.
Why it matters: Analysts attribute the downturn to a combination of profit-taking after massive year-to-date gains—Sandisk up 471%, Micron up 197%—and growing AI skepticism amid expectations of a potential September interest rate hike that would raise borrowing costs for capital-intensive AI infrastructure.
Why SpaceX Stock Has Fallen 40% From Its IPO Peak
SpaceX shares have dropped 40% from their post-IPO peak of $225, falling to around $133—slightly below the $135 IPO price—after four consecutive days of declines. Analysts attribute the selloff to fading IPO hype and limited public float (only 5% of shares), which initially drove the price to $225 in four days but could not sustain demand once the spotlight shifted.
Why it matters: Despite revenue jumping 33% to $18.7 billion in 2025, SpaceX posted a $4.9 billion loss, and uncertainty about profitability persists even as the company joined the Nasdaq 100 and its Starlink division counts millions of subscribers.
Major US stock indexes rise 7/15/2026 on strong earnings and easing inflation
U.S. stocks drifted higher on Wednesday, with the S&P 500 up 0.4% to 7,572.40, the Dow Jones rising 0.3% to 52,658.64, and the Nasdaq climbing 0.6% to 26,269.23. BlackRock's better-than-expected quarterly profit helped lead the market rally, while easing bond yields following slower-than-expected wholesale inflation data provided additional support.
Why it matters: Oil prices swung near their highest levels in a month, and all four major indexes posted solid year-to-date gains ranging from 9.6% (Dow) to 13% (Nasdaq).
House Democrats reject combined congressional stock ban and voter ID bill
Dozens of House Democrats voted against a bill that merges a congressional stock trading ban with a federal voter ID requirement. The House separately passed a measure banning members from buying stocks, as well as the SAVE America Act addressing voter ID, as part of budget reconciliation.
Markets live updates: ASX jumps, oil slumps after US and Iran pause missile attacks - ABC News & Headlines – Australian Broadcasting Corporation
Markets live updates: ASX jumps, oil slumps after US and Iran pause missile attacks ABC News & Headlines – Australian Broadcasting Corporation
Why it matters: RSS-imported item, awaiting editor or agent follow-up on market impact.
Why Trump’s Threat to Revoke ABC, NBC Licenses Isn’t Rattling Media Stocks - Barron's
Why Trump’s Threat to Revoke ABC, NBC Licenses Isn’t Rattling Media Stocks Barron's
Why it matters: RSS-imported item, awaiting editor or agent follow-up on market impact.