US stock indices declined at the opening on July 16 (local time) as semiconductor stocks extended losses. As of 9:59 AM, the Dow Jones Industrial Average fell 0.05% to 52,634.90, the S&P 500 dropped 0.38% to 7,543.67, and the Nasdaq Composite declined 0.93% to 26,024.97. The declines followed semiconductor weakness as market funds rotated from mega-cap technology stocks to banking stocks after major banks reported strong earnings. The shift reflected changing investor sentiment following the previous session's sector performance patterns.
Semiconductor Stocks Extended Previous Session's Decline
Semiconductor stocks continued the previous day's downward trend. TSMC's second-quarter net profit surged 77% year-over-year, exceeding market expectations, but the company's US-listed shares fell 1.82%. Western Digital declined 5.63%, Seagate Technology dropped 5.79%, and Micron fell 3.01%.
US Retail Sales Rose 0.2% in June
The US Department of Commerce reported June retail sales totaled $768.553 billion on a seasonally adjusted basis. The month-over-month increase was 0.2%, down from May's 1.0% growth rate. Bill Adams, chief US economist at Fifth Third Commercial Bank, stated that the slowdown in retail sales growth is positive because it reflects falling gasoline prices rather than weakening consumer demand.
UnitedHealth Surged 8.16% on Earnings Beat
By sector, real estate and healthcare showed strength while technology and telecommunications weakened. UnitedHealth rose 8.16% after its second-quarter results exceeded expectations and the company raised its full-year guidance. The company's second-quarter earnings per share and revenue were $6.38 and $112.03 billion, respectively, both surpassing market estimates of $4.90 and $110.85 billion.
United Airlines fell 2.55% despite beating earnings estimates, as surging oil prices increased concerns about future performance. The airline stated it expects fuel costs to rise by an additional $6 billion. Atai Life Sciences surged 31.62% after announcing that Eli Lilly would acquire the psychedelic drug developer for $2.8 billion.
US-Iran Tensions Affected Investor Sentiment
Heightened tensions between the US and Iran dampened investor sentiment. Reports emerged that if the US attacks Iran's power infrastructure, it requested Yemen's Houthi rebels to close the Red Sea gateway. If both the Strait of Hormuz and the Red Sea are blocked, two critical global logistics and energy arteries would be simultaneously shut.
European markets also declined. The Euro Stoxx 50 index traded 0.42% lower at 6,238.97. The UK's FTSE 100 and Germany's DAX indices fell 0.43% and 0.96%, respectively. France's CAC 40 index dropped 0.79%.
International oil prices rose. The August 2026 delivery West Texas Intermediate crude oil price increased 0.46% to $79.97 per barrel.
FAQ
What happened to US stocks on July 16 at the opening?
US stock indices declined at the opening on July 16 (local time), with the Dow Jones Industrial Average falling 0.05% to 52,634.90, the S&P 500 dropping 0.38% to 7,543.67, and the Nasdaq Composite declining 0.93% to 26,024.97 as of 9:59 AM.
Why did semiconductor stocks fall despite TSMC's strong earnings?
Semiconductor stocks extended losses as market funds rotated from mega-cap technology stocks to banking stocks following strong bank earnings reports. TSMC's US-listed shares fell 1.82% despite the company's second-quarter net profit surging 77% year-over-year and exceeding market expectations.
How did June retail sales perform in the US?
The US Department of Commerce reported June retail sales increased 0.2% month-over-month to $768.553 billion on a seasonally adjusted basis, slowing from May's 1.0% growth rate, primarily reflecting falling gasoline prices rather than weakening consumer demand according to Fifth Third Commercial Bank's chief US economist.
