Stocks fell on Thursday as a sell-off in technology stocks overshadowed a number of solid earnings reports. Semiconductor stocks came under pressure after Taiwan Semiconductor Manufacturing Co. (TSMC) raised its capital spending forecast, overshadowing another strong quarterly result. Elsewhere in technology, Alphabet fell more than 4% following reports the company had delayed the launch of its flagship AI model, Gemini 3.5 Pro.
The Dow was the relative outperformer overnight, only slipping 0.2%, with over 73% of its stocks closing higher, another great example of broadening market strength. Reporting season continues to support stocks, despite the uncertainty around inflation and the US-Iran War – Bloomberg news reported that of the 9% of the S&P 500 stocks that have reported so far, a whopping 88% have beaten EPS estimates.
- The Dow continues to look well positioned to rally through 2H of 2026 as the value stocks come back into favour.
