NEW YORK — On Friday, July 17, 2026, Wall Street extended its decline as stocks tied to the artificial intelligence (AI) boom, which had driven much of the year's gains, experienced a broad selloff. Semiconductor shares, which had recently led market advances, were at the forefront of the downturn, with the Philadelphia SE Semiconductor Index (.SOX) logging its steepest weekly loss in over a year. The index has fallen more than 18% in July and closed 20.2% below its June 22 record high, confirming it entered a bear market on that date. Despite the recent losses, the SOX remains up nearly 65% year-to-date, outperforming the S&P 500's approximate 9% gain.

Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska, described the situation as “chip fatigue,” highlighting the sustained pressure on chip stocks. Some investors in the AI sector are reportedly preparing for a slowdown in the nearly trillion-dollar spending boom, with active managers reducing their exposure, according to a Reuters analysis.

Among individual stocks, Uber Technologies dropped 2.1% following its announcement to acquire Germany's Delivery Hero in a deal valued at nearly US$15 billion. Intuitive Surgical shares declined 14.2% after the company maintained its da Vinci procedure growth forecast but cautioned that changes in insurance plans might be delaying patient care.

All three major US stock indexes closed lower for the day and posted weekly losses. Despite the pullback, early earnings season has started positively, with banks leading the initial reports, suggesting more sectors and industries will report in the coming weeks.

Sources