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Chip sell-off unsettles markets

A renewed retreat in semiconductor shares pushed Asian equities lower on Thursday, with losses particularly pronounced in South Korea and Japan after disappointing investor reactions to US technology-sector results. Wall Street ended Wednesday mixed as a record-setting Dow contrasted with declines for the S&P 500 and Nasdaq-100.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

Negative market data
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Asian equities declined on Thursday as a sell-off in semiconductor shares followed weak reactions to US technology earnings, with Korea’s Kospi falling 4.5% and Japan’s Nikkei 225 declining 1%. Hong Kong’s Hang Seng Index slid 1.9%, led by insurers after reports that China is enforcing taxes on investment income from offshore insurance policies. Australia’s S&P/ASX 200 rose 0.4% after reaching a record on Wednesday, as investors awaited SoftBank earnings later on Thursday and US payrolls data on Friday.

Dow reaches new record on Iran hopes

The Dow Jones Industrial Average gained 0.5% to a record 54,349.12 points on Wednesday as hopes for a provisional agreement to reopen the Strait of Hormuz supported investor sentiment, while the S&P 500 slipped 0.2% to 7723.55 points and the Nasdaq-100 fell 0.8% to 29,487.79 points. SpaceX declined 13.6% after investors questioned Elon Musk’s ambitious revenue and orbital data-centre plans, while chipmaker AMD fell 7% as its artificial-intelligence outlook disappointed.

US private hiring slows sharply

US private employers added 44,000 jobs in July, down from a downwardly revised 95,000 in June and below economists’ expectations, ADP reported on Wednesday. Services payrolls increased by 47,000, led by education and health services, while goods-producing industries shed 3000 jobs. Annual pay growth for workers changing employers accelerated to 7%, its fastest pace since August 2025, pointing to continued labour shortages in parts of the economy.

US and euro-area activity gains momentum

US and eurozone private-sector activity accelerated in July, according to S&P Global surveys released Wednesday, led by a revival in services demand. The US services activity index rose to 54.6 from 51.2 in June, its strongest reading in nine months, while the euro-area composite PMI increased to 52.0 from 50.0 as services returned to expansion. Business confidence improved in both regions, but the inflation signal diverged: US input and selling-price growth accelerated amid tariffs and higher energy costs, while eurozone cost and output-price pressures moderated.

EuroStoxx retreat ends record run

The Euro Stoxx 50 fell 0.1% to 6480.25 points on Wednesday, ending its record rally after doubts briefly emerged over how quickly the US and Iran could agree to reopen the Strait of Hormuz. The Swiss Market Index in Zurich rose 0.6% to 14,551.56 points. Novo Nordisk lost 4.3% as investors remained dissatisfied with its outlook and the performance of its "Wegovy" weight-loss pill, whereas shares of healthcare groups Fresenius and Sandoz gained more than 5% and 6%, respectively, following their results.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Airbnb, Commerzbank, ConocoPhillips, Deutsche Telekom, Diageo, Henkel, Merck, Rheinmetall, Siemens, SoftBank Group, Swiss Re, Swisscom, and Zurich Insurance.

Economic data in focus: Swiss unemployment rate (09:00), Italian manufacturing production (10:00), Euro-area retail sales (11:00) and US weekly initial jobless claims (14:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.