This content was published on
July 16, 2026 - 12:33
5 minutes
(Bloomberg) — Stocks mirrored the cautious moves across most asset classes as traders considered whether earnings justified further advances in the artificial intelligence trade and uncertainty swirled around the Middle East.S&P 500 futures slipped 0.1%, while Nasdaq 100 contracts dropped 0.5%. A strong earnings beat and raised sales outlook from Taiwan Semiconductor Manufacturing Co. failed to trigger fresh gains for the sector that has fueled most of this year’s stock market gains. Europe’s Stoxx 600 was down 0.5%.Brent crude held above $84 a barrel after the US struck Iran for a fifth straight day and hit a sanctioned oil tanker near the country’s main export terminal. Treasuries edged lower, with the 10-year yield rising two basis points to 4.57%. The dollar barely budged, while gold headed for its first day of losses in three.Chipmakers’ leading role in this year’s equity advances is increasingly coming under strain as traders grapple with lofty stock valuations and whether AI hyperscalers are building more capacity than they will need. Investors are also looking for opportunities to rotate to other sectors within the AI trade that will benefit from the global buildout at more attractive prices.“There’s been a lot of concentration in the market and that means there’s little room for error,” said Richard Flynn, managing director at Charles Schwab UK. “Global geopolitical risk is elevated and so there’s a relative tone of caution fundamentally looking at the macro outlook.”While chipmaking-related stocks were broadly lower in US premarket trading, technology laggards such as software shares attracted bids. TSMC’s American depositary receipts fell 4%. Alphabet Inc. led gains among the Magnificent Seven. UnitedHealth Group Inc. rallied on a profit beat and raised outlook.“There’s been a lot of rotation within the AI trade, and a small rotation more broadly,” said Toni Meadows, head of investments at BRI Wealth Management. “It’s probably a healthy thing to have consolidation. The further things go, the more stretched they get and then the reaction is bigger.”An outlier to Thursday’s subdued trading was in Seoul, where sharp volatility in its chipmaking heavyweights drove another steep decline in the Kospi Index.South Korean authorities announced a temporary halt to new listings of single-stock leveraged exchange-traded funds. Many market participants have blamed the products for intensifying swings because of the daily rebalancing flows required to maintain their promised return ratios.After two days in which softer-than-expected inflation data saw traders dial back their expectations for Federal Reserve interest rate hikes this year, June retail sales numbers will put the spotlight on the strength of American consumers.Netflix Inc. is on the list of companies expected to report results after the market close.Corporate News:UnitedHealth Group Inc. raised its outlook for the year and reported quarterly profit well ahead of Wall Street’s views, helping to solidify the company’s earnings recovery after a historic collapse. General Electric Co. raised its full-year outlook and topped Wall Street’s earnings expectations, a sign the world’s largest jet-engine manufacturer is able to sidestep disruptions related to the war in Iran and capitalize on robust travel demand. Taiwan Semiconductor Manufacturing Co. raised its spending and revenue projections for the year, reflecting its confidence that torrid growth in demand for chips and data centers will extend into 2027. Baidu Inc. plans to pursue a dual primary listing in the US and Hong Kong, a move that will allow it to tap mainland Chinese investors. Uber Technologies Inc. has agreed to buy Delivery Hero SE in a deal that values the German food-delivery company at $14.8 billion. Eli Lilly & Co. is in talks to acquire AtaiBeckley Inc., according to people familiar with the matter, underscoring growing interest from large drugmakers in the once-fringe area of psychedelic medicine. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.5% as of 11:30 a.m. London time S&P 500 futures fell 0.1% Nasdaq 100 futures fell 0.5% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index fell 1.4% The MSCI Emerging Markets Index fell 1.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1463 The Japanese yen was little changed at 162.18 per dollar The offshore yuan was little changed at 6.7695 per dollar The British pound fell 0.3% to $1.3503 CryptocurrenciesBitcoin fell 1.2% to $64,179.01 Ether fell 1.8% to $1,887.68 BondsThe yield on 10-year Treasuries advanced two basis points to 4.57% Germany’s 10-year yield advanced two basis points to 3.14% Britain’s 10-year yield advanced two basis points to 4.96% CommoditiesBrent crude fell 0.2% to $84.76 a barrel Spot gold fell 0.7% to $4,033.08 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling.©2026 Bloomberg L.P.
