U.S. equity futures are attempting a modest rebound after last week’s semiconductor-led selloff. At approximately 5:18 a.m. ET, S&P 500 futures were up 0.22%, Dow futures were up 0.20% and Nasdaq 100 futures were up 0.39%. Russell 2000 futures were up about 0.3% on delayed data. The positive start remains tentative as Brent crude moves above $90 and investors prepare for earnings from Alphabet, Tesla, Intel and IBM.
U.S. equities ended sharply lower Friday as the semiconductor unwind broadened into a wider risk-off move. The S&P 500 fell 1.01%, the Dow declined 0.77%, the Nasdaq lost 1.40% and the Russell 2000 slipped 0.4%. For the week, the S&P 500 lost 1.6%, the Nasdaq fell 2.9%, the Dow declined 0.9% and the Russell 2000 dropped 0.5%. The Philadelphia Semiconductor Index finished more than 20% below its June high, formally entering a bear market.
Market internals confirmed that the weakness extended beyond mega-cap Technology. Decliners led advancers by 1.90:1 on the NYSE and 1.81:1 on the Nasdaq. Total exchange volume reached 13.77B shares on the NYSE and 17.91B shares on the Nasdaq, excluding regional activity.
Treasury performance was mixed Friday. The 2-year yield rose 3 basis points to 4.18%, while the 10-year yield fell 1 basis point to 4.55% and the 30-year declined 2 basis points to 5.07%. The DXY was little changed at 100.74. The euro held near $1.1442, sterling eased to $1.3459, and the dollar was unchanged at approximately ¥162.38.
August WTI crude rose 4.24% Friday to $82.30, while August gold gained 0.64% to $4,017.70. Oil extended higher early Monday, with WTI near $84.50 and Brent moving above $90 after another round of U.S. strikes on Iran and further disruption concerns around the Strait of Hormuz. The renewed energy spike is reviving inflation concerns despite last week’s softer CPI and PPI reports.
Friday’s economic data were mixed. June housing starts rose to an annualized 1.42M, above the 1.31M consensus, but building permits fell to 1.37M. Industrial production increased just 0.1%, while preliminary July consumer sentiment improved to 54.4, its strongest reading in five months. Monday’s calendar is light, with the June Leading Economic Index at 10:00 a.m. ET expected to be unchanged after a 0.1% increase in May.
Earnings will be the principal market catalyst this week. Alphabet and Tesla report Wednesday, followed by Intel on Thursday. Investors will focus on whether hyperscaler spending remains strong enough to support AI infrastructure earnings, particularly after the recent collapse in semiconductor momentum. Of the first 49 S&P 500 companies to report, 90% have exceeded expectations, and LSEG now forecasts aggregate second-quarter earnings growth of approximately 26%.
Sector Highlights
Friday’s sector performance reflected a broad defensive retreat, with Energy +1.16% the only advancing group. Real Estate was nearly flat at -0.01%, followed by Industrials -0.40%, Health Care -0.44%, Utilities -0.72%, Consumer Staples -0.77%, Materials -0.86% and Financials -0.91%. The largest declines came from Communication Services -2.38%, Consumer Discretionary -1.58% and Technology -1.11%. Month to date, the Dow is down 0.33%, the S&P 500 is down 0.56%, the Nasdaq is down 2.65% and the Russell 2000 is down 2.05%.
Consumer Discretionary
- Domino’s Pizza (DPZ) missed quarterly profit and same-store-sales estimates for a second consecutive quarter. U.S. comparable sales increased just 0.1%, below the 0.62% consensus, while earnings of $4.07 per share missed the $4.17 estimate. Management cited cautious consumer spending, elevated living costs and stronger competition.
- Tesla (TSLA) reports Wednesday. Investors will focus on vehicle margins, capital spending and progress in robotics and autonomous-driving initiatives after recent pressure across high-valuation growth stocks.
Communication Services
- Netflix (NFLX -7.3%) fell Friday after issuing a weaker-than-expected earnings forecast, adding to concerns about whether content, pricing and advertising growth can maintain recent momentum.
- Alphabet (GOOGL -3.2%) was among Friday’s largest mega-cap decliners. Wednesday’s earnings will be a major test of Search and cloud growth, as well as investor tolerance for continued heavy AI infrastructure spending.
Information Technology
- Intel (INTC) and Texas Instruments (TXN) report this week, providing important reads on data-center demand, traditional semiconductor markets and whether the recent chip correction reflects valuation pressure or weakening fundamentals.
- The Philadelphia Semiconductor Index ended Friday 20.2% below its June 22 record, despite remaining nearly 65% higher for the year. The sharp drawdown leaves chip earnings and guidance as the week’s primary Technology catalyst.
Health Care
- Intuitive Surgical (ISRG -14.2%) tumbled Friday after leaving its procedure-growth forecast unchanged and warning that insurance-plan changes may be delaying some patient care.
Industrials
- Uber Technologies (UBER -2.1%) declined after announcing an agreement to acquire Delivery Hero in a transaction valued at nearly $15B.
Energy
- Exxon Mobil (XOM), Chevron (CVX) and ConocoPhillips (COP) remain the most direct large-cap beneficiaries of Monday’s renewed oil rally. Energy was Friday’s only advancing S&P 500 sector as geopolitical risk lifted crude prices.
Data sourced from FactSet Research Systems Inc.
Disclaimer: This article is for information purposes only and does not constitute investment advice.
