Major stock indexes finished lower on Thursday following a busy day of corporate earnings reports, marking an end to two consecutive days of gains. Shares within the semiconductor industry saw declines amid renewed apprehension regarding future spending on Artificial Intelligence (AI) infrastructure.
Market Performance and Tech Sector Weakness
The tech-heavy Nasdaq index, the benchmark S&P 500, and the Dow Jones Industrial Average all closed down significantly. Specifically, these major indices recorded declines of 1.5%, 0.5%, and 0.2%, respectively.
Declines were particularly notable in memory and storage sectors. U.S.-listed shares of South Korean firm SK Hynix (SKHY) dropped roughly 14% after having fallen 9% the previous day. Similarly, the Roundhill Memory ETF (DRAM) declined nearly 9%. Components within this sector, including Sandisk (SNDK) and Seagate Technology Holdings (STX), fell sharply by 13% and 10%, respectively, following steep losses in the prior trading session.
Taiwan Semiconductor Manufacturing Co. (TSM) experienced a drop of more than 2%. This decline occurred despite the world’s largest contract chip manufacturer reporting quarterly results that exceeded expectations and increasing its full-year forecast for capital expenditures. The iShares Semiconductor ETF (SOXX), which tracks TSMC, declined by 4.5%.
Among mega-cap technology stocks, five of the “Magnificent Seven” ended lower. Alphabet (GOOGL) led these declines, falling about 4.5%. This drop followed a Bloomberg report stating that Google’s unit was reportedly months behind schedule in delivering its flagship AI model, Gemini 3.5 Pro. Shares of SpaceX (SPCX), associated with Elon Musk, were also 3% lower, closing below their IPO price of $135 for the first time.
Corporate Earnings Highlights
While overall tech sentiment struggled, several companies reported strong earnings or positive outlooks. UnitedHealth Group (UNH) shares reached a high not seen in over a year after announcing results that surpassed Wall Street expectations and subsequently raising its full-year profit guidance. The stock finished up 1% following afternoon gains.
In other post-earnings movements, Abbott Laboratories (ABT) surged 11%, leading the S&P 500 in late trading. Conversely, GE Aerospace (GE) dropped by 4%. Netflix (NFLX) closed approximately 1% higher ahead of its results.
J.B. Hunt Transport Services (JBHT) also saw a rise on Thursday, climbing nearly 7%, one day after the company reported second-quarter profit and revenue that beat analyst estimates. The Lowell, Ark.-based firm posted second-quarter earnings of $1.91 per share on revenue that grew 19% year-over-year to reach $3.50 billion.
Economic Indicators and Commodities
Investors also processed various economic readings. U.S. retail sales were reported up 0.2% in June, aligning with economists’ predictions. Furthermore, jobless claims for the week ending July 11 totaled 208,000, which was lower than the anticipated figure of 218,000.
“Despite challenges, consumers are still spending and the labor market shows no signs of cracking,” wrote Ellen Zentner, Chief Economic Strategist for Morgan Stanley Wealth Management. “This type of data won’t move the Fed’s needle either way, but it underscores the ongoing resilience of the US economy.”
In commodity markets, oil prices were slightly depressed as traders assessed geopolitical developments in the Middle East, including a report published in The Wall Street Journal suggesting President Donald Trump favored expanding U.S. military operations in Iran. West Texas Intermediate (WTI) futures, the U.S. benchmark, fell 0.7% to $79 a barrel at 4 p.m. ET. Meanwhile, Brent crude futures, used as the global standard, decreased by 0.8% to $84.25 a barrel.
Other financial metrics included:
- The 10-year Treasury yield stood near 4.57%, an increase of one basis point from Wednesday’s closing rate.
- Bitcoin was trading around $64,200, reflecting a slight decrease over the preceding 24 hours.
- The U.S. dollar index increased marginally by 0.3% to reach 100.78 against a basket of foreign currencies.
- Gold futures were down 1.8% at $3,980 an ounce.
