Chip Stocks Sell-Off Ripples from Asia to New York After Samsung Earnings

Barry Adams
07 Jul, 2026
New York City

Benchmark indexes turned lower on Tuesday as investors continued to avoid high-flying AI-related stocks. 

The S&P 500 Index decreased 0.1%, and the tech-dominated Nasdaq Composite declined 0.9%, and investors rotated out of AI-related names into financials, healthcare, and industrials. 

Chips and memory stocks dived for the second session even after Samsung Electronics reported a 19-fold rise in income in the second quarter. 

Shares of Micron, Marvell Technology, SanDisk, Nvidia, and AMD decreased between 2% and 7% following the reaction to Samsung results. 

Benchmark indexes in Japan dropped 2% and in South Korea fell 5%, and the weakness in tech stocks rippled to markets in Europe. 

Market averages in Germany decreased 0.6%, but in France and the U.K., they advanced 0.3%, respectively. 

Crude oil prices advanced 0.6% to $68.50 a barrel, and the Brent crude oil price inched higher 0.8% to $72.53 a barrel following reports of Iranian attacks on commercial ships in the Strait of Hormuz. 

In the absence of any major earnings releases scheduled today, investors will focus on the U.S. trade deficit. 

The U.S. trade deficit widened sharply in May after imports rose faster than exports, according to the U.S. Bureau of Economic Analysis. 

Exports fell 3.2% to $317.7 billion, and imports advanced 3.3% to $395.3 billion, resulting in a trade deficit of $77.6 billion, the largest gap since March 2025.

 

U.S. Movers 

Vertex Pharma decreased 0.3% to $525.0, and the company agreed to acquire rare-disease-focused Crinetics Pharmaceuticals in a $10 billion deal. 

Vertex focuses on development and commercialization of medicines for serious diseases related to autoimmune and inflammatory disorders. 

Vertex agreed to acquire Crinetics for $85 a share, or $8.8 billion in cash, and the deal is expected to be completed by the third quarter of this year. 

Crinetics jumped 99% to $83.63 in early trading in New York, and the company focuses on developing medicines for hormone-related diseases, including endocrine disorders.