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Semiconductor Selloff Drives Nasdaq Lower as Markets Split

Rising yields, a TSMC warning about higher chip prices and U.S. strikes on Iran have pushed investors to reassess valuations for chip and AI-linked stocks.

Overview

  • The Nasdaq fell about 0.5–0.7% after chip names slid for a second day, while the PHLX Semiconductor Index dropped roughly 3.5% and Nvidia led major chip losses.
  • TSMC reported record second-quarter revenue and raised its capital spending outlook, but its shares fell after management said chip prices will rise, stoking sector caution.
  • The Dow rose about 0.2% as the only major index in the green and the S&P 500 traded near flat, reflecting a split market where technology-heavy benchmarks lag.
  • Weekly jobless claims came in firmer than expected and Treasury yields and the dollar ticked up, which reduced appetite for long-duration growth stocks and pressured rich valuations.
  • U.S. airstrikes on Iran and concern about oil flows through the Strait of Hormuz added geopolitical and energy risk, increasing market volatility and encouraging flows into less cyclical stocks.