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US Equity Futures Drop as AI Concerns Weigh on Tech Stocks, Middle East Conflict Continues

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US equity futures were lower pre-bell Friday as concerns over artificial intelligence spending weighed on chip stocks and the wider technology sector, while the conflict in the Middle East showed no signs of de-escalating.

Dow Jones Industrial Average futures were 0.5% lower, S&P 500 futures were down 0.8%, and Nasdaq futures were 1.6% lower.

Global tech stocks continued their drop from the previous session, including Nvidia (NVDA), which was down 2.5% in premarket activity.

US Central Command said in a post on X that it completed the sixth consecutive wave of attacks against Iran, degrading the nation's military capabilities and holding it "accountable" for recent attacks on commercial shipping in the Strait of Hormuz.

Iran said it had targeted US military forces in Syria and Bahrain in a broadening of the scope of its attacks in the Middle East.

Traders assessed the latest round of earnings, with Netflix (NFLX) reporting an increase in fiscal Q2 earnings and revenue on late Thursday.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.9% at $85.83 per barrel and US West Texas Intermediate crude 2.2% lower at $80.68 per barrel.

Housing starts for June, slated for 8:30 am ET, are expected at 1.31 million units annually, according to estimates compiled by Bloomberg. The June import price index is expected to show a 0.7% month-over-month decrease after a 1.9% gain previously. The export price index is also projected to drop by 0.7%, compared with a gain of 1.3% previously.

The June industrial production report, due at 9:15 am ET, is forecast to show a 0.2% gain following a 0.1% increase in the prior month. The University of Michigan consumer sentiment index for July, slated for 10 am ET, is expected at 51.0, up from 49.5 previously.

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US Equity Markets End Lower Amid Tech Sell-Off, Iran's Threat to Block Red Sea

US equity indexes closed lower on Thursday amid a sell-off in technology stocks, and Iran threatened to close the Red Sea in case of attacks on civilian sites.* US retail sales rose by 0.2% in June, as expected in a Bloomberg-compiled poll and following the previous month's revised 1.0% increase.* US initial jobless claims fell to a level of 208,000 in the week ended July 11 from an upwardly revised 216,000 level in the previous week, compared with expectations for a level of 217,000 in a survey of analysts compiled by Bloomberg.* The Iranian military warns "all infrastructure in the region will be crushed under steel blows" if the US carries out its threat to attack Iran's civilian sites, Al Jazeera reported.* August West Texas Intermediate crude oil fell $0.84 to settle at $78.93 per barrel, while September Brent crude, the global benchmark, was last seen down $0.92 at $84.17.* Abbott Laboratories (ABT) shares were up about 11%, the top gainer on the S&P 500, after lifting its full-year earnings outlook on Thursday as the healthcare firm reported Q2 results above market estimates.* Shares of Sandisk (SNDK), Western Digital (WDC), and Seagate Technology (STX) were down as part of a larger decline in the tech sector. Sandisk shares fell 13%, Western Digital stock dropped nearly 9%, and Seagate shed roughly 10%.

Dow JonesNasdaq CompositeS&P 500$ABT$SNDK$STX$WDC
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Update: US Equity Indexes Decline Amid Sell-Off in Chipmakers, Iran's Warning on Red Sea Route

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes dropped as a sell-off in chipmakers pushed technology sharply lower, and Iran threatened to close the Red Sea crude oil route if President Donald Trump orders an attack on Tehran's power infrastructure.The Nasdaq declined 1.8% to 25,786.2, the S&P 500 fell 0.8% to 7,508.7, and the Dow Jones Industrial Average declined 0.5% to 52,386.8.Technology slumped 2.3%, the worst of a trio of decliners in the final leg of trading.Shares of Taiwan Semiconductor Manufacturing (TSM) slid 3.1% after the firm earmarked an additional $100 billion to increase its chipmaking capacity in the US, raising its total planned investment to $265 billion, Bloomberg reported Thursday, citing a US official. Taiwan Semiconductor also reported Q2 results on Thursday, with year-over-year earnings and net revenue rising and Q3 sales guidance beating consensus.Among stocks with market capitalization exceeding $200 billion each, 15 out of the bottom 20 names were from the technology sector, according to data compiled by Finviz. Half of the decliners were semiconductor firms, the data showed. The worst performer was SanDisk (SNDK), down 11%.In company news, UnitedHealth's (UNH) shares jumped 3.1%, making it one of the Dow's top gainers, after the company posted higher Q2 adjusted earnings and revenue and raised its 2026 adjusted EPS outlook.In geopolitical news, the US military launched a sixth consecutive night of strikes on Iran, with the country's media reporting explosions on Qeshm Island, Bandar Abbas, and Chabahar, according to Al Jazeera, a Middle Eastern broadcaster.The Iranian military has warned "all infrastructure in the region will be crushed under steel blows" if the US carries out its threat to attack Iran's civilian sites, the Al Jazeera report said. Iran has asked Yemen's Houthi movement to stand ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, Reuters reported, citing three sources.Total volumes of petroleum transiting Bab el-Mandeb amounted to 7.4 million barrels per day in June, or about 7% of global oil output, up from 4.2 million bpd a year ago, MarineLink reported, citing Kpler data.The front-month US West Texas Intermediate fell 0.7% to $79.08 a barrel, hovering around its highest in about a month amid a rally that began after the US renewed strikes on Iran a week ago. North Sea Brent futures retreated 0.7% to $84.34 a barrel, close to its month-high.Iraqi crude loadings more than doubled to average roughly 1.2 million barrels per day in the first half of July, Reuters reported, citing Kpler data and a source with direct knowledge of the flows, as exports accelerated following months of restricted shipments.

Dow JonesNasdaq CompositeS&P 500$SNDK$TSM$UNH
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Update: US Equity Indexes Mixed as Slumping Technology Pushes Nasdaq, S&P 500 Lower

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes traded mixed as a sell-off in chipmakers pushed technology sharply lower, while UnitedHealth's (UNH) strong Q2 results helped lift the price-weighted Dow Jones Industrial Average.The Nasdaq declined 0.8% to 26,063.2, and the S&P 500 fell 0.2% to 7,557.6 after midday Thursday. The Dow Jones Industrial Average bucked the intraday trend, up 0.2% to 52,769.1.Consumer staples, healthcare, and real estate topped the gainers, while technology slumped, down 1.8% intraday.Shares of Taiwan Semiconductor Manufacturing (TSM) retreated 2.6% after the firm earmarked an additional $100 billion to increase its chipmaking capacity in the US, raising its total planned investment to $265 billion, Bloomberg reported Thursday, citing a US official. Taiwan Semiconductor also reported Q2 results on Thursday, with year-over-year earnings and net revenue rising and Q3 sales guidance beating consensus.Among stocks with market capitalization exceeding $200 billion each, 15 out of the bottom 20 names were from the technology sector, according to data compiled by Finviz. Half of the decliners were semiconductor firms, the data showed. The worst performer was SanDisk (SNDK), down 9.5%.In company news, UnitedHealth's shares jumped 3.5%, making it one of the Dow's top gainers, after the company posted higher Q2 adjusted earnings and revenue and raised its 2026 adjusted EPS outlook.In geopolitical news, Iran has asked Yemen's Houthi movement to stand ready to close the Red Sea oil route if the US strikes Iranian power infrastructure, Reuters reported, citing three sources.The front-month US West Texas Intermediate was little changed at $79.61 a barrel, and global benchmark North Sea Brent was steady at $84.96 a barrel. Both crude oil types traded lower earlier in the session.Most US Treasury yields rose after midday, with the 10-year up 2.8 basis points to 4.57%.

Dow JonesNasdaq CompositeS&P 500$SNDK$TSM$UNH