US stocks: Nasdaq falls on chip rout before Fed, July 8, 2026
July 8, 2026
The Nasdaq buckled again on Tuesday, weighed down by a wave of semiconductor selling that spread from Asia. One day before the Fed minutes, investors are trimming technology and hunting for any clue on the path of interest rates. The US session stays the anchor of a jittery market that is still far from panic.
Asian chips drag Wall Street down
The Nasdaq Composite lost 1.16% to 25,818.69, its second slide in three sessions. The S&P 500 fell 0.45% to 7,503.85, while the Dow Jones, after another intraday record, held its decline to 0.25% at 52,925.15. The trigger came from Seoul. Disappointing Samsung results sent the KOSPI down 4.9%, with Samsung and SK Hynix shedding more than 9%. The jolt reopened doubts about artificial-intelligence valuations, the market's engine for months. The shock rippled through Europe, where the DAX gave up 1.37% and the CAC 40 slipped 0.51% to 8,431.66.
AI sentiment turns sour
Rotation out of technology defined the session. "The sentiment around the AI trade feels a little sour at this point," said Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research, who mainly reads the weakness as excess being wrung out of lopsided positioning. Goldman Sachs struck a bolder note on Nvidia. The bank called the 21.7x forward earnings multiple attractive against its five-year average, supported by rising hyperscaler AI capital spending. The tug-of-war between profit-taking and buying the dip stays wide open, with Broadcom caught in the same downdraft.
Tense oil, gold on the sidelines
Brent gained 1.26% to $72.89 after an LNG carrier was struck by a projectile near the Strait of Hormuz, a blunt reminder of the geopolitical premium hanging over crude. Even so, prices sit near their lowest since late February, as expectations of ample supply cap any rally. Gold holds around $4,150 as traders wait for the Fed before committing. In currencies, the euro slips to 1.1423 against a firm dollar.
All eyes on the FOMC minutes
Everything points to 20:00 Paris time, when the minutes of the June meeting land. The record looks firm. Nine officials then expected at least one rate hike before the end of 2026, a signal markets have not fully priced. The minutes also set the stage for mapping policy under new Fed Chair Kevin Warsh. The VIX, at 15.57, betrays contained anxiety, yet the expected move on the S&P 500 runs near 64 points into Friday's expiry. In crypto, the Fear & Greed index stays pinned in extreme fear at 23 and bitcoin drifts back toward $62,800. For live index moves, see our market page.
Key levels today
| Instrument | Level / Price | Change | Watch |
|---|---|---|---|
| S&P 500 | 7,503.85 | -0.45% | FOMC minutes |
| Nasdaq Composite | 25,818.69 | -1.16% | Semiconductors |
| Dow Jones | 52,925.15 | -0.25% | Sector rotation |
| CAC 40 | 8,431.66 | -0.51% | Luxury vs tech |
| Brent | $72.89 | +1.26% | Strait of Hormuz |
| EUR/USD | 1.1423 | -0.16% | Firm dollar |
| Bitcoin | $62,839 | -1.8% | Extreme fear |
Economic agenda
- 16:00 wholesale inventories (May)
- 20:00 FOMC minutes
- 21:00 consumer credit (May)
- Tomorrow 14:30 initial jobless claims
Bottom line
Semiconductors set the tempo and pull Wall Street lower before a decisive event. The FOMC minutes at 20:00 will settle the next move.
This is not investment advice.