Chip selloff drags Nasdaq 1.16% lower as Samsung and DeepSeek hit semiconductors

S&P 500 close: 7,503.85 (-0.45%) Breadth: Nasdaq -1.16%, Dow -0.25%, Russell 2000 -0.90% Sentiment: mixed

The S&P 500 closed at 7,503.85 on 7 July 2026, down 0.45%, as a semiconductor selloff sparked by Samsung's second-quarter memory earnings and reports that China's DeepSeek is building its own AI chip pulled the Nasdaq down 1.16%. INTC.US fell 9.66%, the steepest drop among large-cap chipmakers, while NVDA.US closed up 0.71%, the only major chip name to hold. Money rotated out of technology and into energy and defensives: the Technology sector fell 2.39% while Energy rose 2.84%, the day's best sector, on firmer oil.

What moved the index

• Semiconductors led the decline. INTC.US fell 9.66%, MRVL.US 7.45%, LRCX.US 6.87%, AMD.US 6.51%, MU.US 4.71% and TSM.US 4.25% after Samsung's second-quarter results pointed to softer memory pricing and reports that DeepSeek is developing its own AI chip to rival Nvidia. Chips carry a heavier weight in the Nasdaq than the S&P, which is why the Nasdaq fell 1.16% against the S&P's 0.45%.
• Tesla and EV names weighed on both indices. TSLA.US fell 4.02% and RIVN.US 18.12%, the latter after Rivian launched a 75 million share sale of roughly $1.5 billion that overshadowed an upbeat second-quarter delivery preannouncement.
• Rising yields and a firmer dollar pressured growth. The US 10-year yield rose 5 basis points to 4.53% and the dollar index gained 0.26% to 101.12, a headwind for long-duration technology valuations.

The largest technology names cushioned the S&P and kept the Dow near flat. NVDA.US closed up 0.71%, META.US 2.55%, AMZN.US 0.75% and MSFT.US 0.54%. Their strength, plus green closes in Energy, Health Care and Utilities, is why the S&P fell less than half as much as the Nasdaq.

Session highlights

The S&P 500 fell 0.45% to 7,503.85 on 7 July 2026, its weakness concentrated in semiconductors rather than the broad tape.

• INTC.US fell 9.66% to $110.39, the steepest large-cap chip drop, with a delayed 18A node and foundry losses compounding the sector selloff.
• NVDA.US rose 0.71% to $196.93, the lone major chipmaker to close higher after opening lower on the DeepSeek chip reports.
• TSLA.US fell 4.02% to $402.90 as EV sentiment soured alongside Rivian's dilutive raise.
• The VIX rose 3.60% to 16.13 and the Russell 2000 fell 0.90% to 2,982.49, showing the selling reached past technology into small caps.

Sector scorecard

• Best: Energy +2.84%, Health Care +1.53%, Real Estate +1.35%
• Worst: Technology -2.39%, Industrials -1.71%, Materials -0.90%
• Dispersion (Energy to Technology): 5.23 points
• Six of eleven sectors closed higher, a rotation out of chips and into energy and defensives.

Top movers

Notable announcements

• CRNX.US: Vertex Pharmaceuticals (VRTX.US, -1.39%) agreed to buy Crinetics for about $10 billion in cash at $85 a share, a roughly 100% premium to Monday's close.
• SPCX.US fell 6.83% to $149.47, slipping below its $150 June debut price as SpaceX joined the Nasdaq-100 effective today.
• RIVN.US priced a 75 million share offering, about 5.5% of shares outstanding, hours after preannouncing second-quarter revenue above prior guidance.

After the bell

The post-close slate was light, with second-quarter earnings season not yet underway. PENG.US closed down 7.38% to $62.71 with the chip sector, then posted record quarterly results and raised guidance after the bell. The marquee reports arrive later in July, when the big banks open the season.

Next session catalysts (ET)

• Wed 09:30: US cash open. Overnight futures point lower, with S&P futures at -0.52% and Nasdaq futures at -1.74% after the bell.
• Thu 08:30: weekly initial jobless claims.
• Mid-July: second-quarter earnings season begins with the large banks.
• Ongoing: memory and equipment names remain the swing factor after the Samsung-driven selloff.

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