Stock futures fall as global chip sell-off continues: Live updates

Stock futures fell early Friday after the U.S. military completed its sixth consecutive night of strikes against Iran, following a tough session on Wall Street that saw semiconductor names extend declines.

Dow Jones Industrial Average futures slipped 301 points, or 0.6%. S&P 500 futures lost 0.8%, while Nasdaq-100 futures dropped 1.6% as tech stocks came under scrutiny.

The U.S. Central Command said overnight that it had completed its sixth consecutive evening of strikes against Iran, hitting dozens of military targets, including logistics infrastructure and maritime capabilities.

The escalating standoff comes as the fragile truce reached last month has fractured, once again disrupting energy flows through the strategically vital Strait of Hormuz, which typically handles around 20% of the world’s oil traffic.

Thursday marked a tough session after a decline in chipmakers dragged the broader market lower. The S&P 500 shed 0.5% on the day, while the Nasdaq Composite dropped 1.5%. The Dow closed 105.67 points, or 0.2%, lower.

The VanEck Semiconductor ETF (SMH) slid nearly 4% as Taiwan Semiconductor lost more than 2% following a mixed second-quarter report. While the company’s bottom line surged from the year-earlier period, Taiwan Semi also hiked its full-year spending outlook. Marvell Technology, STMicroelectronics and Micron followed Taiwan Semiconductor lower.

Thursday’s decline put SMH down 6.9% for the week, on pace for its third weekly decline in four weeks. The major stock benchmarks are also down week to date, with the S&P 500 off by 0.6%, while the Dow and Nasdaq have slipped 0.2% and 1.5%, respectively.

A sell-off in Asia-Pacific markets accelerated on Friday, with chipmakers extending their decline. Japan’s Nikkei 225 closed 4% lower, while Australia’s benchmark S&P/ASX 200 fell 0.5%. Mainland China’s CSI 300 closed 3.6% lower. South Korean markets were closed for a public holiday.

The sell-off, led by chip stocks and the broader tech sector, also reached Europe in early morning trading. At 8:22 a.m. in London (3:22 a.m. ET), Dutch semiconductor equipment makers ASMI and ASML were down by 4.6% and 3.8%, respectively. STMicroelectronics shares lost 5%, while Infineon was 4.2% lower and BE Semiconductor shares lost 3.7%.

Despite the recent turbulence in the artificial intelligence trade — chips in particular — the S&P 500 remains about 1% below its all-time high set in early June.

“The fact that the market hasn’t fallen apart tells me that this likely not a major bull peak,” Ed Clissold, chief U.S. strategist at Ned Davis Research, told CNBC’s “Closing Bell.” “I’d be more concerned if the Russell 2000 had severely underperformed over the past few weeks.”

He added that, while the economy may “slow down a little bit” near term, a recession is unlikely. Clissold also said consolidation periods in the market may help the market take some froth out of certain sectors.

Investors will also be monitoring the University of Michigan’s consumer sentiment index print for July, which is due for release at 10 a.m. ET on Friday.