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

Tech Stocks Tumble on AI Concerns, Corporate Warnings

Global technology stocks as investor sentiment soured on artificial intelligence, with semiconductor shares leading the decline. IBM's warning about falling sales in the AI sector, impacting companies perceived as outsiders. This downturn contributed to a broader market rotation, with US equity futures. Coronation Asset Management trimmed its exposure to chipmakers like TSMC and SK Hynix due to AI hype, while increasing allocations to Indian stocks. US corporate insiders are selling shares at a near-record pace, a move some investors view as a warning sign about market prospects.

Global Markets React to Geopolitical Tensions and Economic Data

Oil prices stabilized, leading to a slight dip in the dollar despite ongoing hostilities between the U.S. and Iran. This stabilization, however, did not prevent a fall in U.S. Treasury yields, which. Gold prices, tracking for a weekly decline amid rate-hike bets fueled by the U.S.-Iran conflict. Shipping traffic in the Persian Gulf, contributing to higher oil prices as the conflict disrupts energy supply. Meanwhile, European stocks are expected to drop as AI anxiety impacts sentiment, although strategists are increasingly optimistic about European stocks overall according to a Bloomberg survey.

Corporate Earnings and Deal-Making in Focus

Fifth Third Bank's parent company posted a profit of $763 million in the second quarter, boosted by the Comerica acquisition. Airbus secured a major order from Air China for 15 A350-900 widebody aircraft and 40 A320neo series planes, a deal valued at approximately $12.4 billion. Aliko Dangote has nearly completed a $2.5 billion private stock placement for his refinery business as it prepares for an initial public offering. In India, fast-delivery company Zepto Ltd. is reportedly seeking a valuation sharply below its peak for its IPO, with concerns over cash burn tempering optimism.

Investment Strategies and Market Outlooks

Citigroup Inc.'s Beata Manthey believes for the equity rally to broaden beyond the tech sector. Michael Burry, known for his role in "The Big Short," recommends after it lagged peers during the AI rally. UBS Asset Management is planning to short Treasuries, betting that the robust U.S. economy will erode the haven appeal of government debt. Investors are also grappling with the implications of AI spending, with questions arising about and how much.

Regional Market Developments and Company News

Reliance Industries Ltd. founders, led by Mukesh Ambani by the most since 2019 following a prolonged stock slump. Brazil's ambition to enter China's onshore bond market faces hurdles as corporate Brazil's participation remains uncertain. The Philippine Stock Exchange is preparing a slew of measures, including new exchange-traded funds, to. In the UK, Burberry reported flat sales growth for its first quarter but noted growth across divisions for the first time in three years as part of its turnaround plan. Swedish defense company Saab backed its guidance as defense demand remains strong.