On the 16th (local time), the three major U.S. stock indexes opened lower across the board on the New York stock market as semiconductor stocks weakened and geopolitical tensions in the Middle East intensified. As funds shifted into major bank stocks, the declines in mega-cap tech and semiconductor names stood out.
At 9:59 a.m. on the New York Stock Exchange (NYSE), the large-cap-focused Standard & Poor's (S&P) 500 index fell 28.73 points, or 0.38%, from the previous session to 7,543.67. The tech-heavy Nasdaq composite dropped 244.26 points, or 0.93%, to 26,024.97. The Dow Jones industrial average was also down 23.74 points, or 0.05%, at 52,634.90.
Semiconductor stocks extended losses from the previous day. As major large banks released results that beat market expectations, investors appeared to move money from mega-cap tech into bank stocks.
TSMC, the world's largest contract chipmaker, reported second-quarter net profit surged 77% from a year earlier, topping market forecasts, but its U.S.-listed shares fell 1.82%. Western Digital and Seagate Technology dropped 5.63% and 5.79%, respectively, and Micron also fell 3.01%.
Escalating tensions between the United States and Iran also dampened risk appetite. Reports said that if the United States strikes Iran's power infrastructure, Iran could ask Yemen's Houthi rebels to blockade the Red Sea gateway. Concerns grew that if the Red Sea is blocked following the Strait of Hormuz, two key arteries for global logistics and energy shipments could be cut off simultaneously.
U.S. retail sales growth for June, released the same day, slowed from the prior month. According to the Department of Commerce, June retail sales, seasonally adjusted, were $768.553 billion, up 0.2% from the previous month. Compared with the 1.0% growth rate in May, the pace of increase narrowed significantly.
Bill Adams, chief economist for the United States at Fifth Third Commercial Bank, said the slowdown in the retail sales growth rate reflects falling gasoline prices rather than weakening consumer demand, calling it a positive development.
By sector, real estate and health care were strong, while technology and communication services were weak.
UnitedHealth jumped 8.16% after its second-quarter results beat market expectations and it raised its full-year outlook. Second-quarter earnings per share were $6.38 and revenue was $112.03 billion, both topping estimates of $4.90 and $110.85 billion.
United Airlines released better-than-expected results, but its shares fell 2.55% as cost pressures from a surge in oil prices came into focus. The company projected fuel expense would increase by an additional $6 billion.
Atai Beckley, a developer of psychedelic therapies, soared 31.62% after U.S. drugmaker Eli Lilly said it would acquire the company for $2.8 billion.
Major European stock markets also fell across the board. The Euro Stoxx 50 index declined 0.42% from the previous transaction to 6,238.97. The U.K.'s FTSE 100 and Germany's DAX dropped 0.43% and 0.96%, respectively, and France's CAC 40 also fell 0.79%.
International oil prices rose. At the same time, West Texas Intermediate (WTI) for August 2026 delivery was up 0.46% from the previous transaction at $79.97 a barrel.