Oops, Tech Did It Again. Tech stocks dragged all three major indexes down on Thursday, offsetting what could have otherwise been a rather strong day for equities.
The tech-heavy Nasdaq Composite fell 1.5%. The S&P 500 shed 0.5% -- even though eight out of its 11 sectors actually gained on the day -- and the Dow Jones Industrial Average was down 0.2%.
Chip stocks were the market's biggest laggards today. The iShares Semiconductor ETF $(SOXX)$ fell 4.5% despite stronger-than-expected earnings from companies like Taiwan Semiconductor Manufacturing Co. and ASML. All but one of the 30 companies that trade in the SOXX were down today.
Bank of America's global fund manager survey provides clues into the pullback. My colleague Martin Baccardax notes that while most managers remain bullish on stocks over the next 12 months, they think the semiconductor trade is "by far the most crowded in the market." Managers were also split over whether AI stocks are in a bubble -- 43% said yes, and 48% said no.
Chip stocks were also reeling from market volatility in South Korea today. The KOSPI Composite index, which is heavily weighted toward chip makers SK Hynix and Samsung Electronics, fell 6.4% on Thursday after the Bank of Korea raised interest rates for the first time since January 2023.
Prediction markets don't see the U.S. following in Korea's footsteps; they're betting instead that the Federal Reserve will hold rates steady at the FOMC's meeting on July 29, according to the CME FedWatch Tool. But there are certainly members of the rate-setting committee who lean hawkish. On Thursday, Dallas Federal Reserve President Lorie Logan said in prepared remarks that she believes "modestly" higher rates would generate a better balance between economic risks and the Fed's dual mandate to stabilize prices and maximize employment.
"Inflation has been too high, for too long, and does not appear to be on track all the way back to 2%. And the inflation risks are to the upside, " said Logan, a current voting member of the Fed's Federal Open Market Committee.
The Hot Stock: Abbott Laboratories +10.7% The Biggest Loser: Sandisk -12.6%
Best Sector: Consumer Staples +2.9% Worst Sector: Communication Services -2.9%
The U.S. Slaps New Tariffs on Brazil. There Are More to Come.
A new tariff bombshell just entered the villa. Starting next Wednesday, the U.S. will impose 25% tariffs on certain Brazilian goods.
The tariffs were imposed under Section 301 of the Trade Act of 1974 following a yearlong investigation that officials say revealed unfair trading practices. The new levies replace the 50% tariff on many Brazilian goods imposed last year that were struck down in February by the Supreme Court.
Encouragingly for Brazilian exporters, the new duties include several exclusions on key items, such as coffee, orange juice, beef, rare earths, fertilizers, and pharmaceutical products. Goldman Sachs analyst Alberto Ramos estimates that the new tariffs will only apply to about 26% of Brazilian imports, and that the government will intervene to cushion the blow.
"We expect the Brazilian government to offer concessional credit lines to the most affected exporting sectors/industries," he wrote in a research note Thursday. He also expects the Brazilian government to eventually consider select retaliatory measures.
Brazil isn't the only country that could be on the firing line this week as Trump administration officials look to rebuild an aggressive tariff framework. My colleague, Reshma Kapadia, notes that trade experts anticipate more tariffs as early as Friday -- 10% to 12.5% on 60 countries that are tied to a Section 301 investigation on forced labor. Another Section 301 investigation, related to excess capacity, targets 16 economies.
Read Reshma's full story here.
The Calendar
Fifth Third Bancorp, Regions Financial, Travelers, and Truist Financial report earnings tomorrow.
The Census Bureau reports residential construction statistics for June, and the University of Michigan releases its Consumer Sentiment index for July.
What We're Reading Today
-- America Is Spending Billions Pivoting Away from Chinese Minerals. These
Countries Could Benefit.
-- SpaceX Stock Falls Below $135 IPO Price -- and Cathie Wood Keeps Buying
the Dip
-- Subaru Cars Have a Cultish Following. Why the Stock Deserves Investor
Love.
-- Why Abbott Stock Is Having Its Best Day in 24 Years
-- The Dallas Fed's Logan Says Interest Rates Need a Little Boost
Barron's Live returns on Monday. Barron's Live features timely and actionable insights for investors. We give you behind-the-scenes conversations with the newsroom, connecting you with our editors and reporters covering the markets, the economy, and more.
Sign up here
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 16, 2026 19:55 ET (23:55 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments