Nasdaq 100: Chip Stocks Slide Despite TSMC Beat as US Stocks Retreat

• TSMC beat earnings and increased capex guidance plus announced $100 billion Arizona investment, yet its stock fell 4% pre-market with the VanEck Semiconductor ETF down 2.2%
• Rate hike probability dropped from 41% to 12% in two sessions following soft CPI and PPI data, with retail sales and jobless claims data expected to test the repricing trend
• Nasdaq 100 futures tested the 50-day moving average at 29,855, with technical analysts watching 29,303 as a potential trigger for steeper declines toward 28,512

Market Summary: Nasdaq 100 Retreats as Chip Stocks Slide Despite Positive Earnings

Key Market Movements:

The Nasdaq 100 declined 0.76% to 29,466.50, while the Dow Jones gained 0.21% to 53,009.00, and S&P 500 futures fell 0.21% to 7,599.00 as of mid-morning trading on July 16, 2026.

Semiconductor Sector Weakness:

Despite TSMC beating earnings expectations and raising its capital spending forecast from $52-56 billion to $60-64 billion—plus announcing an additional $100 billion Arizona investment—the stock dropped over 4% in pre-market trading. The selloff spread globally, with SK Hynix plunging 11%, Arm Holdings declining approximately 2.2%, and European chipmakers posting broad losses. Analysts attribute the weakness to positioning adjustments on a crowded trade rather than deteriorating demand fundamentals.

Sector Rotation:

UnitedHealth led the Dow higher, surging over 7% after beating earnings and raising full-year guidance. J.B. Hunt added nearly 7% on strengthening intermodal demand, signaling a rotation from growth stocks into healthcare and transportation sectors.

Other Notable Movers:

• GE Aerospace fell 4% despite beating estimates and raising guidance
• United Airlines declined 3% on warnings of $6 billion in additional fuel costs
• Eli Lilly agreed to acquire AtaiBeckley for $2.8 billion, sending shares up 34%
• Uber gained on its $14.8 billion Delivery Hero acquisition

Technical Analysis:

The Nasdaq 100 is testing its 50-day moving average at 29,855.48, with key support at 29,303.50. A break below could trigger further declines toward 28,909.75.

Catalysts:

Retail sales and weekly jobless claims data at 12:30 GMT, plus Netflix earnings after the close, will determine whether the current rotation sustains.