US sharemarkets finished lower overnight as renewed weakness in semiconductor stocks overshadowed another solid batch of corporate earnings and encouraging economic data.
The S&P 500 fell 0.51% to 7,533.77, while the Nasdaq Composite dropped 1.47% to 25,881.95. The Dow Jones Industrial Average lost 105.67 points, or 0.20%, to 52,552.97.
Technology stocks came under pressure after Taiwan Semiconductor lifted its full-year capital expenditure forecast, raising concerns over rising AI investment costs despite reporting better-than-expected quarterly results. US-listed shares of the chipmaker fell more than 2%.
The semiconductor sector weakened broadly, with the VanEck Semiconductor ETF falling almost 4%. Micron Technology, Advanced Micro Devices and Broadcom each lost more than 5%, while US-listed shares of SK Hynix dropped more than 13%. Alphabet also fell over 4% following reports it had delayed the release of its latest artificial intelligence model.
Despite the market weakness, the US earnings season continued to impress. More than 87% of the 40 S&P 500 companies to report so far have exceeded analysts’ expectations, with major banks delivering stronger-than-expected quarterly results earlier in the week.
Economic data also pointed to a resilient US economy. Weekly jobless claims came in below expectations at 208,000, while retail sales rose 0.2%, matching forecasts.
Australian Market Outlook
Australian shares are expected to open lower as weakness in global technology stocks offsets the positive earnings backdrop.
S&P/ASX 200 futures are down 15 points, or 0.2%, to 8,784.
Investors will also be watching Eurozone inflation data and US housing starts later today for further clues on the global economic outlook.
