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Nasdaq opens lower as chip stocks slide; Nasdaq 100 drops over 2%

Nasdaq opens lower as chip stocks slide; Nasdaq 100 drops over 2%

Semiconductor shares led a wider technology sell-off as Samsung fell 8% despite upbeat results, while investors reassessed AI demand expectations and weighed reports that China's DeepSeek is developing its own chip.

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Fact Check
The Reuters markets article 'S&P 500 down, Nasdaq slides as AI chip worries persist' confirms the Nasdaq fell more than 1% (1.02%) and chip stocks slid sharply (SOX down 5.5%) on July 7, 2026, despite strong Samsung earnings, and cites the DeepSeek AI chip report as a driver. The companion Reuters article confirms the DeepSeek chip development report. Every component of the claim is directly supported by authoritative primary reporting.
    Reference: 12
Summary

U.S. stocks opened mixed to lower on Tuesday before technology losses deepened, with semiconductor shares driving the decline. The Nasdaq Composite fell 161.0 points, or 0.62%, to 25,960.13 and the S&P 500 dropped 20.8 points, or 0.28%, to 7,516.63 at the open, while the Dow rose 48.1 points, or 0.09%, to 53,104.06. As trading continued, the Nasdaq 100 fell more than 2% and the Philadelphia Semiconductor Index dropped more than 6%. The move came as Samsung Electronics shares fell 8% even after reporting strong results and saying it expects operating profit to jump 1,800%, reinforcing investor concerns that elevated AI-linked expectations may be difficult to satisfy. The sell-off spread across chip and memory names including SK Hynix, Micron, Sandisk, Intel, Applied Materials, Lam Research and AMD, while the iShares Semiconductor ETF fell about 5%. Investors were also weighing a report that Chinese AI startup DeepSeek is developing its own chip to reduce reliance on Nvidia and bypass U.S. export restrictions. Bitcoin slipped nearly 1% after the U.S. open, and U.S.-listed crypto-linked stocks including SBET, GEMI, CRCL, MSTR and COIN also declined.

Terms & Concepts
  • Nasdaq 100: Index tracking 100 large non-financial companies listed on Nasdaq, heavily weighted toward technology shares.
  • Philadelphia Semiconductor Index: Stock index that tracks major semiconductor companies and is widely used as a gauge of chip-sector sentiment.
  • AI-driven rally: A market advance supported by investor optimism that artificial intelligence will boost company earnings and valuations.