Chip Stocks and Tariffs Weigh on US Market as Earnings Season Begins
The US stock market is experiencing mixed results today, with the S&P 500 Index down -0.06%, the Dow Jones Industrial Average up +0.07%, and the Nasdaq 100 Index down -1.17%. The September E-mini S&P futures are down -0.10%, and the September E-mini Nasdaq futures are down -1.19%.
A sell-off in chip stocks is putting downward pressure on the overall market, with the iShares Semiconductor ETF (SOXX) down by more than -3%. This decline is attributed to continued concerns about the sustainability of AI demand, despite Intel's forecasted sharp increase in Q3 sales tied to data center demand.
President Trump's new tariff regime is also affecting US stocks. The new tariffs range from 10% to 12.5% on 60 nations and are based on trade authority under Section 301 of the Trade Act of 1974, tied to a claim of forced labor in supply chains. This has led to concerns that the US might expand its military attacks on Iran.
However, stocks are seeing some underlying support today as WTI crude oil prices fell by more than -2%. The outlook for strong Q2 earnings is also a bullish factor for stocks, with forecasts suggesting a +23% increase in earnings.