Nasdaq slides as chip stocks pull back, oil prices edge higher

Traders Union
All News
Financial Institutions
Nasdaq slides as chip stocks pull back

Highlights

Nasdaq Composite falls over 1% as semiconductor stocks retreat despite Taiwan Semiconductor Manufacturing's record earnings and raised $64 billion capital spending plan.
WTI crude rises nearly 1% to above $80 per barrel on renewed supply concerns, though still below the April peak of $113 per barrel.
UnitedHealthcare surges nearly 8% after profit and revenue beat expectations and full-year EPS guidance rises to $19.50–$20, up from $17.75 at year's start.

Tech weakness and oil gains shape early trading

As reported by Cboe Global Markets, markets are mixed in early trading as investors assess conflict risks in the Middle East and earnings updates across major sectors. WTI crude rises nearly 1% to above $80 a barrel as supply concerns build again, although prices remain below the April peak of $113 per barrel.

Semiconductor stocks are retreating even after Taiwan Semiconductor Manufacturing posts its fifth straight quarter of record earnings, with profit rising 77%. The company also raises its global capital spending plan to as much as $64 billion from $60 billion, a move that appears to renew investor concern over returns on heavy AI-related investment.

Taiwan Semiconductor shares fall 4.2% in early trading, while Nvidia loses 1.8%, Advanced Micro Devices drops 2.7%, Micron declines 2.4% and Intel slips 1.9%. The tech-heavy Nasdaq Composite falls more than 1%, while the S&P 500 is down 0.33% and the Dow Jones Industrial Average is slightly above flat.

Earnings drive sharp sector moves

UnitedHealthcare rises close to 8% after the insurer reports profit and revenue above expectations and lifts its full-year outlook for the third time this year. The company says growth is being supported by better aligned pricing, tighter medical cost management and higher premium payments, with earnings per share guidance now at $19.50 to $20, up from $17.75 at the start of the year.

GE Aerospace also beats Wall Street expectations on profit and revenue and raises forward guidance after total orders jump 17%, but its shares fall about 2.8% as the company flags supply shortages and inflation pressures. United Airlines drops 3.3% after issuing guidance that misses estimates despite stronger-than-expected earnings and sales, with the carrier warning it could face nearly $6 billion in added fuel costs this year after second-quarter fuel expense surges 84% year over year to $2.3 billion.

Elsewhere, Apple continues to gain after hitting a record high following progress on compliance with Beijing's rules in China, leaving the stock up 20.5% year to date. Netflix is also in focus ahead of results after the bell, with Wall Street expecting a move of about 8% in either direction after earnings.

Our earlier analysis of Advanced Micro Devices (AMD) highlighted that the stock was under moderate downside pressure, trading below key short- and mid-term moving averages as bearish momentum indicators dominated. We noted AMD was likely to remain range-bound, with further declines favored unless it could decisively break above the $541.89 resistance level, while a move below $482.48 could extend the selloff.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.