Published July 17, 2026 Updated about 2 hours ago By Reuters NEW YORK: The S&P 500 and the Nasdaq slipped on Thursday as renewed weakness in chip stocks over shadowed an upbeat start to second-quarter earnings, while investors parsed fresh economic data for clues on the health of the economy. Semiconductor stocks extended losses from the previous session, with the Philadelphia SE Semiconductor index down 3.5 percent. US-listed shares of TSMC fell 2.1 percent, even after the advanced AI chipmaker reported stellar results. Memory-chip makers were among the biggest laggards. Sandisk fell about 10 percent, while Western Digital and Seagate Technology were down 8 percent and 7.5 percent, respectively. Chip stocks were earlier among the biggest beneficiaries of this year’s rally, as optimism around AI spending by hyperscalers helped drive Wall Street to record highs. Shiraz Ahmed, founder and CEO at Sartorial Wealth Inc, said the chip rally is cooling off, but not because AI is losing steam, but because AI adoption still isn’t fully widespread yet. As a result, heavy capex spending continues across the AI ecosystem, from energy to semiconductors. The S&P 500 has risen more than 10 percent this year and remains close to its June record closing high, leaving the rally vulnerable to any disappointment. The tech-led selloff pulled the benchmark lower, even as every other sector except technology traded higher. Healthcare shares helped cushion the broader market, with gains of 2.2 percent. UnitedHealth raised its 2026 profit forecast, sending shares of the healthcare giant up 4.3 percent and keeping the Dow afloat. Abbott jumped 12 percent after beating quarterly estimates and lifting its annual profit outlook. Defensive groups, including…