The main US stock market indices opened lower on Wednesday as investors sold chip stocks. This comes after Dow Jones and Nasdaq posted blockbuster first half this year. Nasdaq fell over 234.04 points at open at 25,994.23 level, S&P 500 was down 0.62% to open at 7,453.49, whereas the Dow Jones Industrial Average slipped 0.54% to 52,031.17 shortly after open.
Profit-taking following a historic first-half rally triggered a pullback in major semiconductor stocks, with Micron plunging 6% (despite remaining up 277% year-to-date) and SanDisk shedding 8% after an astronomical 850% gain in the first half of 2026. Industry giants Nvidia and Broadcom also slid roughly 3% and 2%, respectively.
This cooling-off period follows a record-smashing six months for the sector, highlighted by the VanEck Semiconductor ETF (SMH) surging 82% to secure its best first half since its inception in May 2000.
This chip and AI-driven momentum heavily boosted the broader indexes in the first half of 2026, pushing the Dow up 8.9% for its best first-half performance since 2021, while the S&P 500 rose 9.6% and the Nasdaq climbed 12.8%. A spectacular second-quarter rally alone had added $2 trillion in combined market capitalization to Micron, Intel, and Advanced Micro Devices, underscoring how central the sector remains to the overall market's upward trajectory despite Tuesday's minor retreat.
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The fall also comes after US Federal Reserve Chair Kevin Warsh reiterated his refusal to offer "forward guidance" on upcoming interest rate decisions. While policymakers chose to hold rates steady in June, persistent inflation has fueled growing support inside the Fed for future hikes. Speaking at the European Central Bank's annual forum in Sintra, Portugal, Warsh declared that the central bank is "charting a new course" and expects a spirited debate or a "good family fight" at the upcoming policy meeting in four weeks.
On the currencies front, the Dollar Spot Index rose 0.2%, whereas euro fell 0.3% to $1.1386 and British pound was little changed at $1.3249; The Japanese yen was also unchanged at 162.55 per dollar.
Bitcoin, the largest traded cryptocurrency, was relatively flat to $58,671.47.
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