Stock Market Today, July 16: Micron Plunges as Tech Stocks Extend Sell-Off

The Nasdaq Composite (^IXIC 1.47%) fell 1.47% to 25,882, the S&P 500 (^GSPC 0.51%) slipped 0.51% to 7,534, and the Dow Jones Industrial Average (^DJI 0.20%) edged 0.20% lower to 52,553 as global technology stocks extended yesterday’s sell-off.

Gold prices fell 1.85% to $3,972.75 as of U.S. market close, and the 10-Year Treasury yield inched up 0.01% to 4.56%. Consumer defensive and healthcare stocks led sector gains, while communication services and tech stocks finished as the laggards.

Today’s biggest moves

The broad sell-off in memory names continued and Micron Technology plunged almost 6%. Shares of Taiwan Semiconductor Manufacturing Company declined despite record earnings due to concerns about artificial intelligence (AI) spending. Space Exploration Technologies fell below its initial public offering price just weeks after its market debut as geopolitical tensions weighed on high-growth stocks. Abbott Laboratories surged over 10% on strong earnings.

What this means for investors

Chip stocks fell today as growing investor AI jitters and escalating violence between the U.S. and Iran further reduced risk appetite. Technology leaders, including Nvidia and Broadcom, dropped as investors rotated into defensive stocks. Investors will be watching upcoming earnings and consumer data for signs of resilience as geopolitical tensions once again take center stage.

With stocks trading close to record highs, bubble concerns are understandable — so much so that a Bank of America fund manager survey released this week showed 45% of respondents thought an AI bubble was the largest tail risk facing markets right now. For long-term investors, the important thing is to look beyond short-term volatility and ensure their portfolios are insulated against a downturn.