Stocks Settle Lower as Chipmakers and AI Stocks Slump
US stocks settled lower as chipmakers and AI-related shares slid. Fed officials’ hawkish remarks on inflation weighed on equities and Treasuries; markets also priced a 10% chance of a 25 bp rate hike at the July 28-29 FOMC. Oil flow through the Strait of Hormuz fell to 3.9m bpd from 8.5m bpd, amid US-Iran tensions. Semiconductor ETF SOXX fell over 4%.
How this was made
The 30-second read
Why it matters
Traders can use the same-day catalysts for specific names (notably ASTS convertible notes, UAL EPS guidance, ABT EPS guidance raise, UNH earnings beat and raise, and MRK USDA approval) while treating the rest of the semiconductor and AI complex as macro beta to rates and risk sentiment.
Market read
This is a close-to-close risk and catalyst mix: broad AI/chip weakness plus several company-specific guidance, approval, and financing events that can drive follow-through.
What to watch
The text highlights hawkish Fed speakers and oil-flow declines, but it does not quantify how much of each stock’s move is valuation versus earnings revisions, so dispersion risk remains high.
Background
The market wrap ties US weakness to hawkish Fed commentary, geopolitical escalation around Iran and the Strait of Hormuz, and a broad selloff in chipmakers and AI/cloud infrastructure stocks.
Ticker impact
SanDisk (SNDK) closed down more than 12% to lead losers in the S&P 500 amid the chipmaker and AI-stock selloff.
Elevated volatility and potential further weakness if the selloff broadens beyond today’s tape.
The text provides a concrete same-day magnitude (-12%) but no new SNDK-specific fundamental catalyst.
Seagate Technology (STX) closed down more than 10% during the chipmakers and AI-infrastructure selloff.
Short-term bearish bias while the market remains focused on rates and AI-spending expectations.
The article frames the move as sector-wide weakness rather than a new STX-specific disclosure.
Western Digital (WDC) closed down more than 9% as cloud infrastructure and AI-infrastructure stocks slumped.
Potential for continued downside if semis/AI proxies stay under pressure.
The article gives the magnitude and sector context but no company-specific news.
Marvel Technology (MRVL) closed down more than 8% alongside other AI-infrastructure and chip-related decliners.
Near-term pressure likely to persist while the market discounts hawkish Fed and risk assets.
Move is described as part of the same selloff wave; no MRVL-specific catalyst is cited.
ARM closed down more than 5% as chipmakers sold off and AI-infrastructure stocks weighed on the broader market.
Short-term downside risk if rates remain the dominant driver.
The article provides a same-day move and sector linkage, without new ARM fundamentals.
Intel (INTC) closed down more than 5% during the broad chipmaker selloff.
Bearish near-term bias tied to continued semiconductor weakness.
No INTC-specific news is provided; the move is attributed to the group selloff.
Micron (MU) closed down more than 5% as AI-infrastructure and chip stocks sold off.
Potential for further weakness if the market extends the selloff.
The article cites the group move but does not add MU-specific information.
Advanced Micro Devices (AMD) closed down more than 5% in the chipmakers and AI stocks slump.
Near-term downside risk until earnings expectations or rate expectations stabilize.
The text links the move to broader chip/AI weakness rather than a new AMD catalyst.
Market effects
Semiconductors, AI infrastructure, and cloud infrastructure were sold together, suggesting a common macro driver (rates and risk sentiment) rather than isolated company issues.
Mixed overseas closes (Euro Stoxx up, Shanghai and Nikkei down) reinforce that the US move is not purely global risk-off but still rate-sensitive.
Iran Strait of Hormuz disruption risk and weaker oil flows can feed into inflation expectations, indirectly affecting rate-sensitive growth equities.
Counterpoint
The article also notes bullish Q2 earnings expectations (+23% forecast) and AI spending as a growth engine, which could limit downside if the selloff is positioning-driven.
Key entities
- companyAST SpaceMobile
Announced intent to offer $1.0 billion of convertible senior notes, coinciding with a sharp -17% close.
- companyUnited Airlines
Forecast full-year adjusted EPS of $9 to $11, with the midpoint below consensus.
- companyAbbott Laboratories
Raised full-year adjusted EPS forecast to $5.45 to $5.60, above consensus midpoint.
- companyUnitedHealth Group
Reported Q2 adjusted EPS of $6.38 and raised full-year adjusted EPS to $19.50 to $20.00.
- companyMerck & Co
USDA approved Lipfendra to reduce LDL cholesterol, supporting a +3% close.
