This content was published on
July 16, 2026 - 14:58
4 minutes
(Bloomberg) — A selloff in chipmakers dragged down stocks on concerns over whether massive artificial-intelligence investments will justify lofty valuations, with the market also falling as higher oil prices lifted bond yields.Wall Street’s best-performing corner this year was gripped by another bout of volatility that sent a closely watched exchange-traded fund tracking semiconductor firms lower by 3.5%. A solid outlook from Taiwan Semiconductor Manufacturing Co. failed to inspire global investors after the main chipmaker for Nvidia Corp. raised its spending plans. Brent topped $85, deepening inflation worries.Investors globally are grappling with whether tech stocks have grown too richly valued, given concerns around data center over-building and uncertainty over when trillions of dollars in spending will deliver lucrative returns. The four biggest US AI operators including Meta Platforms Inc. and Alphabet Inc. are expected to spend upwards of $725 billion this year alone.“The action in the chip stocks going forward is still the most important issue for the stock market,” said Matt Maley at Miller Tabak. “They are definitely showing some meaningful cracks, so they’re going to have to see a strong and sustainable rebound soon or it will raise some raise some real warning flags on the equity market.”Traders also kept a close eye on the geopolitical front, with the US intensifying strikes against Iran, hitting an oil tanker near the country’s main export terminal for the first time since the restart of the blockade on the Islamic Republic’s ports.On the economic front, US retail sales rose modestly in June, dragged down by a drop in gas-station receipts that masked strong gains at some merchants.Corporate Highlights:United Airlines Holdings Inc. expects resilient travel demand to drive up its full-year profit, even in the face of soaring fuel costs that sapped the US airline’s outlook for the current quarter. 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. JB Hunt Transport Services Inc. reported second-quarter adjusted earnings per share that topped analyst estimates, providing a clear sign that stronger freight rates and tighter trucking capacity are starting to flow through to earnings. Uber Technologies Inc. has agreed to buy Delivery Hero SE in a deal that values the German food-delivery company at $14.8 billion and expands the US firm’s global operations. Eli Lilly & Co. agreed to buy AtaiBeckley Inc. for as much as $3.8 billion, underscoring growing interest from large drugmakers in the once-fringe area of psychedelic medicine. 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. Abbott Laboratories raised its 2026 profit guidance after a stronger-than-expected second quarter driven by improved performance across most of its business lines. Merck & Co. won US regulatory approval of a pill that rivals powerful injections for cutting dangerous cholesterol levels, betting the easier-to-take medicine will find more success with high-risk patients for combating the leading cause of death in the world. Some of the main moves in markets:StocksS&P 500 futures fell 0.4% as of 8:57 a.m. New York time Nasdaq 100 futures fell 1% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 fell 0.7% The MSCI World Index fell 0.2% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1449 The British pound fell 0.3% to $1.3498 The Japanese yen was little changed at 162.29 per dollar CryptocurrenciesBitcoin fell 1.5% to $63,944.58 Ether fell 2.6% to $1,872.39 BondsThe yield on 10-year Treasuries advanced four basis points to 4.59% Germany’s 10-year yield advanced four basis points to 3.16% Britain’s 10-year yield advanced six basis points to 4.99% CommoditiesWest Texas Intermediate crude rose 1.2% to $80.56 a barrel Spot gold fell 1.6% to $3,993.88 an ounce ©2026 Bloomberg L.P.
