Wall Street opened sharply lower on Friday, July 17, as a selloff in semiconductor stocks deepened into a broader market pullback. According to Bloomberg, Nasdaq futures tumbled 1.5% before the open, and NDTV Profit reported the Nasdaq fell roughly 2% while the S&P 500 sank as trading got underway.
The pain was concentrated in the chipmakers that have led this year's rally. Per 24/7 Wall St., AMD fell about 5%, Intel dropped 4%, and Nvidia slid 3% before recovering some ground as investors rotated out of the group. Stocktwits and TradingView noted that Taiwan Semiconductor (TSM) slumped to a two-month low even as analysts continued raising their price targets. Crypto Briefing reported that SK Hynix's U.S.-listed shares fell below their $149 listing price for the first time as "AI chip euphoria" cooled.
The jitters were not confined to New York. Moneycontrol reported the pullback was felt "from Seoul to Europe" as investors trimmed exposure to AI-linked stocks that had powered portfolio gains for much of the year. The Economic Times noted that Netflix added to the pressure after a weak showing.
Adding to the unease, several outlets including Investopedia reported that oil prices rose after fighting between the U.S. and Iran escalated, with U.S. strikes hitting Iranian infrastructure and supply routes.
Not everyone is bearish. CNBC's Investing Club said it remains bullish on one chip stock despite a 30% pullback this month, and The Motley Fool flagged names to buy in the dip.
Why it matters: AI-linked chipmakers have driven much of this year's market gains, so a sharp reversal in the sector ripples through global portfolios and retirement savings well beyond tech.