Nasdaq futures drop on AI chip worries ahead of pivotal earnings - Yahoo Finance

What the report says

Yahoo Finance, carrying Reuters reporting, said the S&P 500 finished higher on Tuesday, July 28, 2026, as strength in companies such as Boeing and Coca-Cola countered a selloff in chip shares. The S&P 500 gained 0.21% to 7,428.78, while the Nasdaq slipped 0.22% to 24,876.91 and the Dow Jones Industrial Average rose 1.03% to 52,747.32.

The session reflected investor unease ahead of major technology earnings from Apple, Microsoft and Amazon. Reuters reported that markets have been unsettled by concerns that leading technology firms, including Alphabet, Microsoft and Amazon, may be spending heavily on artificial-intelligence data centers. Microsoft rose 1.1% before its Wednesday results, Amazon edged lower before Thursday earnings, and Apple gained nearly 1% to $340.08 after briefly touching a level that lifted its market value to $5 trillion for the first time.

Chip stocks remained under pressure. The PHLX semiconductor index fell 4.5% and was about 25% below its June 22 record close, though still up 56% for 2026. Other sectors helped offset the weakness: healthcare rose 2.4%, consumer staples gained 2% and materials advanced 1.7%. Coca-Cola climbed 5% after raising its annual revenue and profit outlook, while Boeing gained 4.8% after reporting positive free cash flow.

Investors were also looking to the Federal Reserve’s Wednesday interest-rate decision. Reuters cited CME FedWatch data showing traders saw a 71% chance rates would be held steady and a 29% chance of a quarter-point increase. The report noted that higher borrowing costs could add pressure on AI-focused companies relying more on debt financing.