Stocks Halt Back-to-Back Slide as Chipmakers Climb: Markets Wrap
(Bloomberg) — Stocks halted back-to-back losses as chipmakers bounced while a rally in oil faded on hopes the US and Iran could revive a peace deal.
The 2% gain in a gauge of semiconductor giants such as Nvidia Corp. and Broadcom Inc. propped up the equity market. That’s even as most shares in the S&P 500 actually fell. Alphabet Inc. rose on a report Google is developing a chip to boost artificial-intelligence efficiency. Gilts sank as UK Prime Minister Andy Burnham said he will seek “any flexibility” in fiscal rules.
In a volatile session, oil whipsawed as traders grappled with a barrage of headlines around the Middle East conflict. Iran said mediators have been in touch with proposals on how to ease hostilities with the US after several days of clashes, though tensions remain high after a threat by the Tehran-backed Houthi group to blockade Saudi Arabia.
“Renewed tensions in the Middle East have made the macro backdrop more fragile — but not enough to move us away from our pro-risk stance,” said BlackRock Investment Institute’s Jean Boivin. “Tech and semiconductor stocks sold off sharply last week. We see these moves as overstated.”
This week brings the first results from the megacap group, and pressure is building for the biggest spenders on AI to justify their expenditures. Tesla Inc. and Alphabet Inc. kick off big tech’s reporting season on Wednesday. Then, Microsoft Corp., Meta Platforms Inc., Apple Inc. and Amazon.com Inc. hit the following week. Nvidia reports later next month.
“For stocks to rebound, we need some solid earnings from the key tech names this week, and de-escalation in Iran wouldn’t hurt,” said Tom Essaye at The Sevens Report. “Markets will want to see strong results and more signs of robust demand, but also evidence of restraint and a focus on stability.”
The recent tech pullback likely reflected a combination of profit-taking and investors reassessing whether the robust spending on components required for the AI buildout can continue, according to Brock Weimer at Edward Jones.
“AI will remain a durable investment theme, but we advise investors to complement that exposure with cyclical and value-oriented segments of the market,” he said.
Hedge funds pulled back from US tech stocks at a record pace over the past two months, according to Goldman Sachs Group Inc.’s Prime Services desk led by Vincent Lin.
“The persistence and magnitude of selling since early June point to significant length reduction by tech investors, and some signs of capitulation are starting to emerge,” the desk wrote.
Corporate Highlights:
BlackRock Inc. is looking to sell more than $12 billion of bonds to help finance a Meta Platforms Inc. data center campus in El Paso, Texas, according to people with knowledge of the transaction. Boeing Co. secured a flurry of deals on the opening day of the Farnborough International Airshow, pulling in almost 150 orders, though Airbus SE punched back with a big commitment in the afternoon as the two rivals fight for business from airlines and leasing companies. AMC Entertainment Holdings Inc. soared after posting revenue for the second quarter that beat the average analyst estimate. Domino’s Pizza Inc.’s US comparable sales growth fell to its slowest pace in five quarters, suggesting consumers continue to pull back on dining out, with pizza faring worse than burgers or burrito bowls. Jersey Mike’s Subs Inc. and its shareholders are looking to raise as much as $1.09 billion in an initial public offering, as consumer-oriented companies join the US listing rebound. What Bloomberg strategists say…
“Dip buyers are already on the move after the Philadelphia Semiconductor Index fell into a bear market last week. But chips’ earnings resilience makes the rout only a temporary reset.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 was little changed as of 1:30 p.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average fell 0.5% The MSCI World Index was little changed Currencies
The Bloomberg Dollar Spot Index was little changed The euro fell 0.2% to $1.1415 The British pound fell 0.2% to $1.3429 The Japanese yen was little changed at 162.46 per dollar Cryptocurrencies
Bitcoin rose 1.5% to $65,435.8 Ether rose 1.7% to $1,897.56 Bonds
The yield on 10-year Treasuries advanced five basis points to 4.60% Germany’s 10-year yield advanced two basis points to 3.15% Britain’s 10-year yield advanced eight basis points to 5.03% Commodities
West Texas Intermediate crude rose 0.1% to $82.61 a barrel Spot gold fell 0.1% to $4,011.52 an ounce ©2026 Bloomberg L.P.
