Chip Stock Sell-off Pressures Broader Market Amid AI Demand Concerns and Trump Tariffs
On July 24, 2026, chip stocks experienced a sharp sell-off that dragged down broader market indices. The Nasdaq 100 fell by -1.27%, while the S&P 500 dropped slightly at -0.08%. The iShares Semiconductor ETF (SOXX) declined more than -4% as investors grew wary of whether AI demand can be sustained in the long term, despite Intel forecasting a short-term sales boost from data center activity. The sell-off was compounded by President Trump's new tariff regime on 60 countries and threats to impose additional tariffs on the EU. These measures are based on Section 301 trade authority citing forced labor concerns. The administration also faces potential military escalation in Iran, as Mr. Trump suggested considering a 'massive attack' following Houthi attacks on oil tankers. On a more positive note, WTI crude prices fell by -3% due to continued shipping through the Red Sea despite security threats, and 10-year Treasury yields declined slightly.
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Topics: ai demand concerns geopolitical tensions semiconductors tariffs