Daily News 17th July 26
Daily News
Asia Opens Lower as Chip Sell-Off Drags Wall Street; Gold Holds Below $4,000 While Crude Nears $80 on Escalating US-Iran Strikes; TSMC Commits Extra $100 Billion to Arizona
17 July 2026
Today in Brief
Asia-Pacific markets opened lower Friday, with Japan's Nikkei 225 slipping 0.6%, the Topix down 0.3%, and Australia's S&P/ASX 200 off 0.2%, while South Korean markets were closed for a holiday. On Wall Street, a semiconductor-led sell-off overshadowed solid earnings — the S&P 500 lost 0.51% to 7,533.77, the Nasdaq Composite dropped 1.47% to 25,881.95, and the Dow shed 105.67 points to 52,552.97 — as Taiwan Semiconductor fell more than 2% after lifting its capital-spending forecast to $60–64 billion, and Netflix slid over 8% on a disappointing earnings outlook. Gold held below $4,000 an ounce and was on track to lose more than 3% for the week, while crude oil rose toward $80 per barrel — heading for a roughly 12% weekly gain — as escalating strikes between the US and Iran intensified supply-disruption fears, with Tehran reportedly instructing Yemen's Houthis to close the Bab el-Mandeb Strait if Iranian power infrastructure is attacked.
In other news: Chinese President Xi Jinping pitched China as an AI partner to the Global South at the World AI Conference in Shanghai, pledging 5,000 training opportunities for developing countries; President Trump used a primetime address to revive 2020 election claims, alleging Chinese meddling ahead of the November midterms; Iran warned it would "crush" key regional targets if Trump carries out threats against its infrastructure, calling Hormuz a red line; Fed Vice Chair Philip Jefferson said rate hikes may be needed if inflation does not ease soon, ahead of the July 28-29 meeting; SBI Fund Management's $1 billion IPO — India's biggest this year — drew $30.7 billion in bids on a 41.6-times oversubscription; TSMC posted a 77.4% jump in second-quarter profit and announced an additional $100 billion investment in Arizona; and Alphabet shares sank 4% on a report that its Gemini 3.5 Pro model is months behind schedule.
Asia-Pacific markets open lower Friday as chip weakness weighs on sentiment
Asia-Pacific markets opened lower Friday. Japan's Nikkei 225 slipped 0.6% while the Topix declined 0.3%. Australia's benchmark S&P/ASX 200 was 0.2% lower. South Korea markets were closed for a holiday. In the U.S., Netflix shares fell more than 8% after its second-quarter results came in line with analyst expectations. Thursday's moves come 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 lower, or 0.2%.
Dow drops more than 100 points; S&P 500 closes lower as Alphabet and chip shares sell off
Stocks fell on Thursday as a sell-off in technology stocks overshadowed a raft of solid earnings reports. The S&P 500 lost 0.51% and ended at 7,533.77, while the Nasdaq Composite declined 1.47% to 25,881.95. The tech-heavy major averages struggled with weakness in semiconductors. The Dow Jones Industrial Average shed 105.67 points, or 0.20%, and closed at 52,552.97. Chip stocks slid after Taiwan Semiconductor posted an increase in its spending forecast, which overshadowed a better-than-expected second-quarter report. The company expects capital expenditures to clock in between $60 billion and $64 billion for the year, up from a prior guidance in the range of $52 billion to $56 billion. The stock lost more than 2%.
Gold held below $4,000 an ounce on Friday, on track for a weekly loss of more than 3%
Gold held below $4,000 an ounce on Friday and was on track to lose more than 3% for the week, as escalating tensions in the Middle East pushed oil prices higher, keeping inflationary pressures and interest rate concerns at the forefront. The US launched multiple strikes against Iran this week, while President Donald Trump warned that the US could target the country's infrastructure next week unless diplomatic efforts result in a breakthrough. Iran responded by launching attacks on US bases in neighbouring countries, fuelling fears of further escalation and a prolonged disruption to energy supplies from the region. Meanwhile, softer-than-expected US inflation data released this week has largely ruled out a July rate increase, even as Fed Chair Kevin Warsh reiterated his commitment to restoring price stability.
Crude oil rose toward $80 per barrel on Friday, heading for a 12% weekly gain
Crude oil rose toward $80 per barrel on Friday and was on track to gain about 12% for the week, as escalating attacks between the US and Iran intensified concerns over supply disruptions in the Middle East. The US launched multiple strikes against Iran this week, reportedly hitting an oil tanker near the country's main export terminal for the first time since reimposing a blockade on Iranian ports. President Donald Trump also warned that the US could target Iran's infrastructure next week unless diplomatic efforts produce a breakthrough. Meanwhile, Tehran reportedly instructed Yemen's Houthi rebels to close the Bab el-Mandeb Strait, a critical route for Saudi Arabia's oil exports through the Red Sea, if Iranian power infrastructure comes under attack.
Xi pitches China as AI partner to developing world, warns against risks and security overreach
Chinese President Xi Jinping on Friday positioned China as a partner in artificial intelligence to the Global South, saying that countries should come together to build AI and help developing countries as well. Speaking at the World AI Conference in Shanghai, Xi announced that China will provide developing countries with 5,000 opportunities in AI training and seminar programs, as well as develop AI cooperation with various blocs, including the Association of Southeast Asian Nations, the League of Arab States and the African Union. "China is willing to work with all parties to seize and address the opportunities and challenges of artificial intelligence development with a more open attitude, more pragmatic actions, and a longer-term vision," according to a Google translation of his speech in Mandarin.
Trump doubles down on 2020 election claims in national address, alleging China meddling
President Donald Trump in a national address Thursday night sowed doubts about the security of U.S. election systems and voter information, alleging widespread meddling by China in the 2020 cycle among numerous other claims that were quickly challenged by fact checkers. Trump, who has falsely claimed for years that his loss to former President Joe Biden in the 2020 race was "rigged" due to widespread fraud, claimed in the primetime speech that newly declassified intelligence reveals "shocking vulnerabilities in our election infrastructure." The roughly 25-minute primetime speech came as the president and his allies work to impose major changes in U.S. elections ahead of the November midterms via redistricting, adding procedural steps for Americans to vote and casting doubt on the validity of the country's electoral systems.
Iran warns U.S. of Hormuz 'red line,' says it will retaliate if Trump carries out threats
Iran warned Thursday that it would "crush" key targets in the Middle East if U.S. President Donald Trump's threats to target the country's infrastructure in the coming days are carried out. Trump said in a Tuesday evening interview with Fox News that U.S. forces would target key Iranian infrastructure next week if a diplomatic breakthrough is not achieved. "Next week it gets really bad for them because next week comes the power plants," he said. "Next week comes the bridges. We're going to knock out all their power plants. We're going to knock out all their bridges unless they get to the table and negotiate."
Fed may need to hike rates if inflation does not ease soon, Jefferson says
Federal Reserve Vice Chair Philip Jefferson on Thursday suggested he would be open to raising interest rates if there is no near-term improvement in inflation, though for now he believes it will be enough to hold short-term borrowing costs steady as the Fed did in June. "This policy stance should continue to support the labour market while allowing inflation to resume its decline toward our 2% target as the effects of past tariffs and energy prices pass through completely," Jefferson said in remarks prepared for delivery at the Stanford Institute for Economic Policy Research. "That said, in a scenario where actual inflation does not start to cool down soon, I believe that it could be appropriate to reconsider our current policy stance to ensure we fulfill our commitment to deliver price stability." The Fed next meets to decide rates on July 28-29.
India's biggest IPO this year rakes in bids worth $31 billion, powered by institutional frenzy
India's biggest public market offering this year, SBI Fund Management, has garnered bids worth 2.97 trillion rupees ($30.7 billion), underscoring the liquidity available in the market ahead of the much larger issues anticipated in 2026. SBI Fund Management, which is a joint venture between State Bank of India and Europe's Amundi Group, was in the market to raise 97.9 billion rupees ($1 billion). Its initial public offering was oversubscribed 41.6 times, owing to an enthusiastic response from institutional investors. The portion reserved for qualified institutional buyers was subscribed 140 times, with most of the bids coming from domestic institutional investors such as banks and insurance companies. Participation by retail investors was relatively muted, with subscriptions at 3.6 times the offer that closed on Thursday.
TSMC to invest additional $100 billion in Arizona after second-quarter profit soars 77%
Taiwan Semiconductor Manufacturing Co on Thursday reported a 77.4% jump in second-quarter profit year on year, soaring past estimates as the world's largest contract-chipmaker continues to set consecutive record-breaking milestones. The company forecast third-quarter revenue between $44.6 billion and $45.8 billion, with operating profit margin of 56% to 58%. "AI related demand continues to be extremely robust," said TSMC Chairman C.C. Wei. TSMC will invest an additional $100 billion in Arizona to meet strong customer demand, bringing its total investment in the state to $265 billion, Wei added.
Netflix stock falls as earnings forecast disappoints; company to give fewer engagement updates
Netflix reported second-quarter revenue and earnings that were roughly in line with analyst estimates on Thursday as Wall Street is keeping a close eye on the company's advertising and engagement metrics. Netflix stock fell more than 8% in after-hours trading Thursday as investors appeared disappointed once again in the company's earnings forecast. Netflix reported $12.56 billion in revenue, up 13% year over year and just slightly missing analyst expectations. The rise was attributed to membership growth, pricing and increased ad revenue. Earlier this year, Netflix raised its subscription prices across all its streaming plans. The company said Thursday the results of those price hikes were consistent with prior changes and expectations.
Alphabet shares fall on report its most powerful AI model Gemini 3.5 Pro is delayed
Alphabet shares sank 4% on Thursday following a report that the company has delayed releasing its flagship artificial intelligence model. The search giant's Gemini 3.5 Pro AI model is months behind schedule due to the company's efforts to improve its performance, according to Bloomberg, citing sources familiar with the matter. The model's coding capabilities, in particular, were short of internal expectations and come at a time when rivals like OpenAI and Meta have recently debuted new AI models that outpace Google's current offerings in generating software code, the report said. The company previously announced the Gemini 3.5 Pro AI model in May as part of the company's annual Google I/O developer conference, saying at the time that it was being used internally, but wouldn't be ready for a broader rollout until the following month.
