AI and semiconductor stocks slump, pulling US indexes down

A sharp pullback in leading artificial intelligence and semiconductor stocks dragged down major indexes on Thursday, July 16, 2026, highlighting the outsized influence these companies hold over global markets. The declines came despite generally positive corporate earnings reports from other sectors.

The S&P 500 fell 0.5 percent, closing at 7,533.77, while the Dow Jones Industrial Average dipped 0.2 percent to 52,552.97. The technology-heavy Nasdaq composite bore the brunt of the selloff, dropping 1.5 percent to 25,881.95. The losses were more pronounced internationally, with South Korea's Kospi index plunging 6.4 percent as AI winners Samsung Electronics and SK Hynix slumped.

The downturn was driven by significant drops in the very stocks that have powered the market's rally. Nvidia, the largest company on Wall Street by market value, fell 2.6 percent, exerting the heaviest downward pressure on the S&P 500. Other chipmakers and AI-related firms also retreated sharply. Micron Technology fell 5.2 percent, Sandisk dropped 10.6 percent, and Western Digital sank 9.8 percent. These moves pared back some of the stellar gains these companies have posted this year, which in some cases...