United States

The S&P 500 fell 0.5% to 7,533.77, snapping a three-day winning run, while the Nasdaq Composite dropped 1.5% and the Dow Jones Industrial Average eased 0.2% to 52,552.97. The Philadelphia Semiconductor Index sank 3.5%, extending losses from the previous session, after a solid outlook from TSMC was overshadowed by a higher spending forecast. The chipmaker’s US-listed shares fell 2.1% despite stellar quarterly results. Memory-chip makers bore the brunt of the selling, with Sandisk tumbling about 10%, Western Digital down 8% and Seagate Technology off 7.5%. SK Hynix dropped 12%, while Alphabet sank 4.4% on reports Google is months behind schedule delivering its most powerful flagship AI model. SpaceX slipped 2.97%, on track for an eighth decline in nine sessions. After the bell, Netflix slid after forecasting a second consecutive quarter of slowing sales growth, projecting current-quarter revenue of US$12.9 billion and earnings of US82¢ a share, both a touch below expectations.

The economic pulse remained firm. Initial jobless claims fell by 8,000 to 208,000, well below forecasts, while June retail sales rose modestly as weaker fuel receipts masked solid gains elsewhere. Kansas City Fed president Jeff Schmid nominated inflation as his biggest worry, and Dallas counterpart Lorie Logan called for higher rates, saying inflation does not appear headed sustainably back to target. On the corporate front, UnitedHealth and Abbott Laboratories both lifted full-year guidance, United Airlines disappointed as fuel costs bit, and Uber agreed to buy Delivery Hero in a deal valuing the German group at US$14.8 billion.

Europe

European shares clawed back early losses to finish modestly higher, with the Stoxx 600 up 0.2% and the FTSE 100 gaining 0.5% to 10,572.24. The session belonged to Rotork, which rocketed a record 66.8% after ABB agreed to acquire the British valve maker, though ABB itself fell 5.9% as the market judged the price tag hefty. Telecoms were the weakest corner of the market, with Telenor plunging 11.6% after cutting guidance and Nokia sliding 6.4%. ASML bucked the soft tech tone, rising 3.2% on price target upgrades tied to hopes of higher capacity spending, while Publicis added 3.1% after lifting its growth guidance, dragging the broader media sector higher. Polish convenience-store operator Zabka jumped 10.9% on reports Seven & i Holdings is in talks about an investment.

*Note: These prices are based on futures and/or CFD pricing and may therefore differ slightly from spot pricing.

Commodities and Currencies

Gold fell 2.1% to US$3,976.50 an ounce as renewed US-Iran hostilities rekindled bets the Fed may need to lift rates. Oil was mixed, with Brent flat at US$84.91 a barrel and WTI easing 0.7% to US$79.06 as profit-taking stalled the recent rally, though the US benchmark edged higher in early Friday trade as shipping traffic through the Strait of Hormuz slumped. Iron ore slipped 0.3% to US$100.10 a tonne. The Australian dollar was little changed at 69.98US¢, Bitcoin fell 1.0% to US$64,113.98, and the US 10-year Treasury yield sat at 4.57% against 4.89% for its Australian counterpart. Eurozone CPI and US housing starts headline today’s data calendar.

Economic Calendar

EU:

• CPI YoY, MoM 19:00

US:

• Housing Starts 22:30
• Industrial Production MoM 23:15
• Uni. of Michigan Sentiment 23:15