Stocks Fall on Weakness in Chipmakers and AI Stocks

Stocks slipped as chipmakers and AI-related shares pulled back following a sharp rally in the prior two sessions. The S&P 500 fell 0.47%, the Dow Jones Industrial Average declined 0.22%, and the Nasdaq 100 dropped 1.09%. September E-mini S&P futures were down 0.40% and September E-mini Nasdaq futures fell 0.99%. Market pressure also came from labor-market signals, with the June ADP employment change rising 98,000 versus expectations of 120,000. Fed Chair Warsh offered no guidance on interest rates at a meeting of central bankers in Portugal, while US MBA mortgage applications were flat for the week ended June 26 and the average 30-year fixed rate slipped 2 basis points to 6.57%. Bloomberg Intelligence forecasts suggest Q2 earnings could rise 23%, driven largely by AI spending. Oil fell near 1%, with WTI at a 4.25-month low amid negotiations involving Iran and Qatar, and markets priced a 36% chance of a 25-bp rate hike at the July 28-29 FOMC meeting.