Wall Street posted weekly losses across the board as a sell-off in semiconductor and technology stocks outweighed a string of solid earnings reports, snapping what had been a period of broad market strength.
The S&P 500 dropped 1.6% for the week, ending Friday at 7,457.69. The Nasdaq Composite fared worse, falling 2.9% as chipmakers came under sustained pressure. The Dow Jones Industrial Average shed 0.9% for the week, closing Friday at 52,146.42.
The week opened on a down note after President Trump announced he was reinstating what he described as a blockade on Iranian shipping through the Strait of Hormuz, sending oil prices higher and rattling equities. The S&P 500 fell 0.79% on Monday, with the Nasdaq dropping more than 1.5%.
Markets partially recovered Tuesday and Wednesday as June inflation data came in weaker than expected, fueling hopes the Federal Reserve has more room to cut rates. Big Tech names led the rebound, with Amazon, Alphabet, Microsoft and Apple all posting solid gains mid-week. Apple hit a new all-time high during Wednesday’s session.
But the recovery stalled Thursday and Friday as semiconductor stocks resumed their slide. Taiwan Semiconductor’s decision to increase its capital spending forecast — despite posting a better-than-expected second quarter — rattled chip investors, who took it as a sign of escalating costs rather than a demand signal. Chip names that had surged more than 80% in the first half of 2026 saw continued profit-taking through the end of the week.
IBM was a notable drag on the Dow, falling 25% after warning that second-quarter profits would come in below expectations due to soft demand in its software and infrastructure businesses.
On the positive side, initial unemployment claims fell to 208,000 for the week ending July 11, well below consensus expectations of 218,000, and the Philadelphia Federal Reserve’s manufacturing index soared to 41.4 for July, a strong reading suggesting continued economic expansion.
Second-quarter earnings season is now underway, with analysts forecasting year-over-year earnings growth of roughly 21% for S&P 500 companies — well above the long-term average — setting a high bar for companies to clear in the weeks ahead.