US stock market today: Dow rises, S&P 500 and Nasdaq slip as semiconductor stocks decline

US stocks opened mixed on Thursday, July 16, as investors digested a fresh batch of corporate earnings, monitored developments in the US-Iran conflict, and assessed the latest economic data. Weakness in semiconductor stocks weighed on technology shares despite a strong quarterly report from Taiwan Semiconductor Manufacturing Co. (TSMC).

The Dow Jones Industrial Average rose 0.3% in early trade, supported by a more than 6% jump in UnitedHealth after the health insurer reported better-than-expected quarterly earnings. Meanwhile, the S&P 500 fell around 0.2%, while the Nasdaq Composite declined 0.6% as chip stocks remained under pressure for a second straight session.

Taiwan Semiconductor slipped about 1.4% despite posting record second-quarter revenue and raising its capital expenditure forecast for the year to $60-$64 billion from an earlier range of $52-$56 billion. Investors focused on the company's higher spending plans and pricing outlook, dragging broader semiconductor stocks lower.

On the economic front, US retail sales rose 0.2% in June from the previous month, matching economists' expectations but slowing sharply from May's revised 1% increase, as higher gasoline prices weighed on consumer spending. Meanwhile, initial jobless claims fell to 208,000 for the week ended July 11, below market expectations of 217,000, pointing to continued resilience in the labour market.

Investors also kept a close watch on the escalating conflict in the West Asia following the latest US airstrikes on Iran, with geopolitical uncertainty continuing to influence market sentiment.

Dow futures rise, Nasdaq futures fall as chip stocks slide ahead of earnings

US stock futures traded mixed on Thursday, July 16, as investors assessed the artificial intelligence-driven rally, awaited a fresh batch of corporate earnings, and kept a close watch on the escalating US-Iran conflict.

Futures tied to the Dow Jones Industrial Average rose about 0.3%, or 145 points, supported by a nearly 4% jump in UnitedHealth after the health insurer reported quarterly results that comfortably beat analysts' expectations.

Meanwhile, S&P 500 futures slipped 0.3%, while Nasdaq-100 futures fell 0.9%, giving back some of the gains from the previous session when Big Tech stocks lifted markets and Apple closed at a record high.

Semiconductor stocks came under pressure in premarket trade, weighing on technology shares. The VanEck Semiconductor ETF dropped 2.2%, led by a 4% decline in Arm Holdings, while Taiwan Semiconductor Manufacturing Co. fell nearly 3.9%.

Investors also remained focused on developments in the West Asia after the US carried out another round of airstrikes on Iran on Wednesday. Market participants continued to monitor oil shipments through the Strait of Hormuz, while reports indicated that US President Donald Trump had been briefed on options to further expand the conflict, including additional bombing campaigns and the possible deployment of ground forces.

On the earnings front, Taiwan Semiconductor Manufacturing Company's quarterly results remained in focus for clues on demand linked to the artificial intelligence boom.

Investors were also watching earnings from UnitedHealth Group and GE Aerospace before the opening bell, while Netflix is scheduled to report its second-quarter results after the market closes.

On the macroeconomic front, investors will look to US retail sales data for fresh insights into consumer spending, while weekly jobless claims are expected to provide an update on the health of the labour market. Both reports are due at 8:30 am ET.