Tech Stocks “Fizzle,” U.S. Stocks Run Into Another Cold Start in Early July

On July 13, Eastern time, all three major U.S. stock indexes closed lower. The Nasdaq slid 408 points, down 1.55%; the S&P 500 fell 0.79%; and the Dow held up relatively better, down only 0.25%—behind the divergence, tech stocks, especially the chip sector, became the biggest laggard.

The Philadelphia Semiconductor Index plunged 4.78% in a single day. NVIDIA (NVDA) and Tesla fell more than 3%, Marvell and ARM dropped more than 7%, Intel slid more than 6%, and even SK hynix’s U.S.-listed ADR—just started trading on the Nasdaq—reversed more than 9% in the day. The trigger wasn’t just one thing: the escalation of the U.S.-Iran situation, Trump’s remarks about imposing a 20% fee on cargo passing through the Strait of Hormuz, and a jump in oil prices that reignited inflation worries; on top of that, investors took profits after SK hynix’s listing, and HBM shipments fell short of expectations, causing the chip supply chain to “deflate” first.

What’s notable is that, on the same day, Bitcoin (BTC) broke below support. With risk appetite retreating, the “double hit” scenario of “tech stocks + crypto” played out again. Wall Street is still insisting—at least for the long term—that chip leaders are fine: AI demand hasn’t turned around, but crowded trades need a breather. Still, in the near term, whether the Nasdaq can hold the 25,800 level will be crucial, and NVDA’s results during earnings season will be the key telltale sign.