Stock Market Today, July 17: Stocks Slide as Semiconductor Rout Deepens

Semiconductors led a broad market decline on July 17, 2026, with the Nasdaq falling 1.40%, the S&P 500 down 1.01%, and the Dow off 0.77%. Nvidia, AMD, and Intel all tumbled as concerns about AI spending sustainability and geopolitical tensions pressured the sector. The PHLX Semiconductor Index has dropped over 13% in the past month, though it remains up 63% year-to-date.

Travelers Companies jumped 9% on strong quarterly earnings, offering one of the session's few bright spots. The semiconductor rout marks a sharp reversal for chips, which had been among the year's top performers on AI-driven demand expectations.

The pullback reflects mounting questions about whether current AI infrastructure spending can sustain the sector's elevated valuations, combined with renewed geopolitical risk weighing on supply-chain sentiment. The gap between the month's losses and the year's gains suggests traders are reassessing near-term positioning while the longer-term AI thesis remains intact.