Stock Market Today: Nasdaq Slips 0.05% as US Tech Stocks Stabilise

Key Takeaways

• The Nasdaq Composite declined just 0.05%, outperforming the Dow and S&P 500 as selected AI and semiconductor stocks recovered.
• Alphabet gained 1.5% following a report that Google is developing a server chip designed to run Gemini AI models more efficiently.
• Alphabet, Tesla and Intel earnings could determine whether the recent technology-stock stabilisation develops into a broader recovery.

Earnings Week Takes Centre Stage for US Technology Shares

US technology stocks showed tentative signs of stabilising on Monday, 20 July, as investors returned selectively to semiconductor and artificial intelligence shares following last week’s sharp sell-off.

The Nasdaq Composite finished almost unchanged, falling 12.17 points, or 0.05%, to 25,508.07. That compared with a 0.19% decline in the S&P 500 and a 0.59% fall in the Dow Jones Industrial Average.

Technology shares therefore prevented a more substantial decline across Wall Street. However, weak market breadth, fading semiconductor gains and continued uncertainty surrounding AI valuations showed that investor confidence remained fragile.

Attention is now shifting towards quarterly reports from Alphabet, Tesla and Intel, which could provide important signals about AI infrastructure spending, semiconductor demand and the earnings outlook for major US technology companies.

Technology Stocks Limit the Broader Wall Street Decline

The Nasdaq outperformed the other major US indices as technology, communication-services and semiconductor shares attracted renewed buying interest.

The S&P 500 closed at 7,443.28, down 14.41 points, while the Dow lost 307.16 points to finish at 51,839.26. The smaller decline in the Nasdaq reflected relative strength among several large technology and chip companies.

Nevertheless, participation remained weak. On the Nasdaq, 3,030 stocks declined while only 1,684 advanced. Trading activity was also below normal levels, with approximately 15.5 billion shares changing hands across US exchanges, compared with a 20-day average of 19.94 billion.

These figures indicate that Monday’s technology recovery was concentrated in selected large companies rather than supported by the wider market.

Alphabet Stock Gains on Reported Gemini AI Chip Plans

Alphabet was one of the strongest contributors to the S&P 500, rising 1.5% by the closing bell. The stock had traded more than 3% higher earlier in the session before giving back part of its advance.

The move followed a report that Google is developing a new server chip informally known as “Frozen v2”. The proposed chip would reportedly incorporate elements of the Gemini AI model directly into its hardware, potentially allowing Google to operate AI services more efficiently.

The project could help the company address constraints in computing capacity as demand for generative AI services increases. It would also extend Google’s efforts to build more of its own AI infrastructure rather than relying entirely on external chip suppliers.

However, the development has not been confirmed through a detailed company announcement. Investors are likely to seek further information when Alphabet publishes its second-quarter results on Wednesday.

Beyond the chip project, the market will closely examine Google Cloud growth, advertising revenue, AI-related capital expenditure and management’s spending guidance. Alphabet is one of the largest buyers of data-centre equipment, meaning any change to its investment plans could affect Nvidia, Broadcom, AMD and other companies across the AI supply chain.

Semiconductor Stocks Rebound but Lose Early Momentum

US semiconductor stocks initially staged a stronger recovery, with the Philadelphia Semiconductor Index rising close to 4% during Monday’s session. Those gains narrowed considerably before the close, leaving the index only 0.6% higher.

Nvidia gained approximately 1.4%, while AMD and Sandisk also advanced. The rebound offered some relief after a difficult week in which investors reduced exposure to several high-valuation AI and chip stocks.

The semiconductor index ended last week more than 20% below its late-June record, meeting the commonly used definition of a bear-market decline. Despite that correction, the index remains more than 60% higher in 2026, illustrating both the strength of the earlier AI rally and the scale of recent volatility.

Investors have become increasingly sensitive to whether corporate earnings can justify the sector’s rapid valuation expansion. Even strong results from companies such as TSMC and Samsung Electronics recently received restrained market reactions, suggesting that significant growth was already reflected in share prices.

Monday’s fading rally therefore stopped short of confirming that the semiconductor correction had ended. Upcoming results from Intel and Texas Instruments could provide more evidence about data-centre demand, chip pricing, inventories and corporate spending.

Apple Falls as Microsoft Supports the Market

Performance among the largest US technology companies remained mixed.

Apple declined 2%, making it the biggest individual drag on the S&P 500. Microsoft, by contrast, provided the index with its largest positive contribution, helping offset some of Apple’s losses.

The divergence shows that investors are evaluating individual earnings prospects instead of treating the entire technology sector as a single trade. Companies with direct exposure to cloud computing, AI infrastructure and data-centre spending received greater support, while other megacap names faced continued profit-taking.

Technology shares also remain sensitive to changes in Treasury yields. Higher yields can place pressure on richly valued growth stocks because they reduce the present value assigned to expected future earnings.

Alphabet, Tesla and Intel Earnings Put the AI Trade to the Test

Alphabet’s Wednesday report is expected to be one of the week’s most important events for US technology stocks. Investors will focus not only on the company’s own results but also on what its spending plans imply for the wider AI market.

Wall Street currently expects aggregate S&P 500 earnings to increase approximately 26% year on year during the second quarter. These elevated expectations have helped support equity valuations but have also raised the risk of sharp reactions when companies deliver cautious guidance.

Intel’s results will be watched for developments in its data-centre, AI and foundry businesses. The company’s shares have risen more than 160% in 2026, leaving the market demanding evidence that improving expectations are translating into revenue and profit growth.

Tesla is also scheduled to report this week. Investors are likely to examine automotive margins, vehicle deliveries, pricing, spending requirements and progress in autonomous-driving and AI projects.

Together, the three reports could influence sentiment across cloud computing, electric vehicles, semiconductors and the broader group of megacap technology stocks.

What Comes Next for US Technology Stocks?

The Nasdaq’s near-flat finish indicates that selling pressure eased, but it does not yet establish a sustained technology-sector recovery. Semiconductor gains narrowed sharply before the close, market breadth remained negative and trading volume was relatively light.

Alphabet’s earnings and AI spending outlook could provide the first major test. Intel and Tesla will then offer additional information about semiconductor demand, manufacturing investment, electric-vehicle margins and corporate confidence.

Strong results accompanied by stable or higher investment plans could support AI-related stocks. Conversely, weaker guidance or reduced capital spending could renew pressure across the technology sector, particularly after the substantial gains recorded earlier in 2026.