Overview
- TSMC reported record second-quarter revenue and on July 16 raised its full-year capital spending forecast while cautioning that prices will rise, a combination that unnerved investors and helped start a multi‑day selloff in chip stocks.
- Memory and storage suppliers led the losses with SK Hynix, Micron, Western Digital, Seagate and SanDisk plunging and the PHLX semiconductor index and VanEck SMH ETF falling roughly 3.5–4%, which pressured the Nasdaq.
- The market split as defensive earnings from healthcare heavyweights such as UnitedHealth kept the Dow near flat even as the tech‑heavy Nasdaq and S&P pulled back.
- Mixed U.S. data showing cooler wholesale inflation and stronger regional manufacturing provided some support for risk assets while escalating U.S.–Iran strikes pushed oil and added a separate source of volatility for investors.
- The rout spread to Asian markets, prompted scrutiny of leveraged products in South Korea, and highlighted that heavy concentration in AI and chips leaves markets vulnerable to company-specific signals and swings in hyperscaler spending.