US stocks today: Nasdaq ends lower as chip weakness offsets solid earnings, economic data

Chip stocks pulled ​the Nasdaq and the S&P 500 lower on Thursday as they continued to lead broader market moves despite generally upbeat U.S. economic data and a strong start to second-quarter earnings season.

Among the 11 major sectors in the S&P 500, technology was one of the biggest percentage losers, with semiconductor ‌stocks weighing heavily ⁠on the ⁠broader market.

Daily moves in chips have increasingly dictated the overall movement of the major U.S. stock indexes, particularly the tech-heavy Nasdaq.

“It comes strictly down to the ​weight of the chips in the S&P 500,” said Paul Nolte, senior wealth advisor & market strategist at Murphy & Sylvest in Elmhurst, Illinois. “Three or four ​years ago, it was 8%, and now it’s over 20%. If you look at the rest of the market, it’s doing fine.”

The weakness in chips, even after chip demand bellwether TSMC posted a 77% jump in quarterly profit, demonstrated ​the lofty expectations for a sector that has soared by nearly 70% so far ⁠this year. ‌U.S.-listed shares of the chipmaker lost ground on the day.

Memory-chip makers were among the biggest laggards, ​with SanDisk, Western Digital, ​Seagate Technology , and Intel among the largest percentage losers.”This extreme volatility is very disconcerting ⁠for the average investor when they see these huge swings in their portfolio value,” ​said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. “(But) a number ​of the non-tech sectors are doing well, so it’s a real mix here.”According to preliminary data, the S&P 500 lost 37.78 points, or 0.50%, to end at 7,534.62 points, while the Nasdaq Composite lost 383.76 points, or 1.47%, to 25,885.47. The Dow Jones Industrial Average fell 109.13 points, or 0.21%, to 52,549.51.

The Dow’s losses were cushioned in part by UnitedHealth Group’s advance after the company beat Wall Street earnings estimates and hiked its 2026 forecast.

United Airlines fell as surging oil prices weighed on ‌its forward guidance.

GE Aerospace slid even after the company lifted its 2026 profit forecast.

Analysts have set a high bar for second-quarter earnings season. S&P 500 companies, in aggregate, are expected to post year-on-year ​earnings growth of ​24.8%. Technology earnings alone are seen jumping ⁠65.5% from the year-ago quarter, according to the latest available data from LSEG.

SOLID RETAIL SALES, LOW JOBLESS CLAIMS, WEAK HOUSING DATA

A spate of U.S.economic indicators released on Thursday showed solid core retail sales, a drop in jobless claims and surging ​manufacturing activity in the Northeast.

Less positive data came from the housing sector, with a bigger than expected drop in pending home sales and souring homebuilder sentiment reflecting high borrowing costs and strained affordability for would-be homebuyers.

The U.S. and Iran extended their barrage of airstrikes, prolonging a week-long escalation that has all but voided last month’s truce. But Iran’s release of a U.S. citizen suggested a path remains for the two sides to avert the resumption of all-out war.