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Last updated: July 17, 2026, 8:30 AM ET

Tech Stocks Tumble as AI Hype Falters

Global technology stocks, with semiconductor shares leading the decline. Investors are questioning the valuations of artificial intelligence-related companies, causing major indices like the Nasdaq to fall sharply. Trading futures for the Nasdaq 100 declined 2% as the chip rout deepened, reflecting a broader market rotation away from the sector that has driven much of this year's rally. IBM's warning about sales falling short of expectations between AI winners and other tech players. Chinese AI startup Moonshot's launch of a new model challenging Anthropic's lead between U.S. and Chinese capabilities in frontier AI, adding to broader market anxieties. Coronation Asset Management has trimmed its exposure to chipmakers like TSMC and SK Hynix, while boosting its allocation to Indian stocks.

Global Markets React to Geopolitical Tensions and Economic Data

U.S. Treasury yields as oil prices stabilized, though hostilities between the U.S. and Iran continued, impacting shipping in the Persian Gulf and pushing oil prices higher as traffic slowed. Gold prices a troy ounce, on track for a weekly decline of over 3%, as the U.S.-Iran conflict fueled rate-hike bets. The WSJ Dollar Index rose 0.18% to 97.04, snapping a two-trading-day losing streak. In Europe, UBS and Deutsche Bank amid accelerating earnings growth and confidence in the rally's resilience. Amundi SA is seeking EU approval to include oil and gas in a new fund category supporting the transition to a lower-carbon economy as it sees them as crucial.

Corporate Earnings and Dealmaking Update

Fifth Third Bank posted a profit of $763 million, or 83 cents a share, in the second quarter of Comerica. Airbus SE secured a significant order from Air China for 15 A350-900 widebody aircraft and 40 A320neo series planes, totaling approximately $12.4 billion in transaction value. In India, Aliko Dangote has nearly completed a $2.5 billion private stock placement for his refinery business ahead of an IPO. Meanwhile, Indian fast-delivery company Zepto Ltd. is seeking a valuation sharply below its peak for its IPO, as concerns over cash burn temper optimism around the industry. Manipal Health Enterprises Ltd. is also seeking a lower valuation of about 800 billion rupees ($8.3 for its planned IPO.

Emerging Markets and Specific Company News

Reliance Industries Ltd. founders, led by Mukesh Ambani by the most since 2019 following a prolonged stock slump. The National Stock Exchange of India Ltd. has received a ‘sell’ recommendation ahead of its IPO. Thai stocks are as investors anticipate an end to political turbulence. Michael Burry recommends bargain hunting in Hong Kong's stock market, noting it has lagged peers during the global AI rally. Alcoa Corp. cut its alumina production forecast after operational issues at an Australian refinery weighed on output. Sweetgreen Inc. shares have lost over a quarter of their market value due to fears of a cyclosporiasis outbreak.

Private Equity and Financial Sector Moves

Sweden's EQT reported strong fundraising momentum and earnings growth, with shares rallying 13% as its fee-generating assets under management beat expectations as it posted growth. EQT also reported a rise in net profit and revenue for the first half aided by higher assets. The Abu Dhabi Investment Council has hired a former BlackRock executive to lead its real assets business, underscoring its ability to attract senior global investment talent. Core Logic Inc. is considering offering sweeter terms on its $5.3 billion debt deal due to lukewarm investor demand for the debt sale. Vitol Group is reportedly in late-stage talks to sell its shale oil venture to private equity buyers Carnelian Energy Capital and EnCap Investments in a potential deal.

Autos and Transportation Sector Insights

Volvo Car expects stronger sales in the second half of the year, driven by European growth and a U.S. recovery, despite continued challenges in China as it eyes growth. Uber Technologies and United Airlines were featured in the latest Auto & Transport Market Talks. Arc Best will consolidate brands and cut about 2% of its workforce through layoffs. Chinese automaker XPeng unveiled its L03 SUV in Munich as it steps up overseas expansion amid intensifying domestic competition in global markets.

UK Market Dynamics and Strategy

Global gyrations in stock prices and earnings are over UK shares. Burberry reported flat sales growth for its first quarter but noted growth across divisions for the first time in three years. Several major UK lenders have raised fixed mortgage rates by as much as 0.35 percentage points following the resumption of Middle East hostilities. Investors are suggesting the Bank of England should slow or stop long-dated bond sales, as its quantitative tightening program has been criticized for driving up government borrowing costs as it draws criticism.

Other Notable Market Developments

Circle Internet Group Inc. shares have lost more than three-quarters of their value from post-IPO highs as more stablecoins enter the market amid competition. The Philippine Stock Exchange is preparing reforms, including new ETFs, to attract retail investors away from online gambling and cryptocurrency trading. Eoptolink Technology Inc., a Chinese maker of optical transceivers, has filed confidentially for a multibillion-dollar listing in Hong Kong seeking a listing.