Dow Holds Steady While Nasdaq Stumbles: What Moved Markets This Week
2026-07-17 17:00
•Anders Bylund •The Motley Fool
•••••••• •••••••••••• Axe Capital view
Tech Slump Weighs on Nasdaq, Dow Resilient on Earnings
Nasdaq slides amid AI infrastructure doubts; Dow steadies on solid earnings.
The recent stumble in the Nasdaq, down 2.5% this week, highlights the overextended enthusiasm in AI infrastructure spending. Taiwan Semiconductor’s hefty capex raise to $64 billion signals tech companies are doubling down on costly hardware investments, but IBM’s warning about shifting budgets suggests a potential correction. On the flip side, the Dow’s steadiness—especially strong showings from Travelers and UnitedHealth—reflects pockets of resilience outside the high-flying tech segment. For South African investors, this tech weakness plays out through Prosus and Naspers, which are vulnerable given their heavy exposure to global tech trends and capital markets. Meanwhile, the USD/ZAR may soften somewhat if global risk appetite cools, as foreign investors reassess emerging market allocations. I’d watch these large tech-exposed counters closely but remain cautious. If the AI build-out stalls or macro uncertainty spikes, further downside is likely. On the other hand, steady earnings in financials here and abroad could provide a defensive cushion. this is just my opinion and not financial advice
Trim exposure to Prosus and Naspers in the near term while watching USD/ZAR closely for signs of risk aversion; lean into South African banks like Standard Bank or Nedbank for steadier earnings.
- Prosus
- Naspers
- USD/ZAR
- Standard Bank
- Nedbank
- AI spending rebounds faster than expected supporting tech stocks
- Rand strengthens unexpectedly limiting inflation and supporting local equities
7/10
The Nasdaq fell 2.5% for the week amid concerns about unsustainable AI infrastructure spending, with major tech stocks declining. The Dow remained relatively stable, buoyed by strong earnings from Travelers and UnitedHealth Group. Chip stocks faced particular pressure following Taiwan Semiconductor's increased capex forecast and IBM's profit warning, while Netflix dropped 8.5% despite meeting expectations.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Anders Bylund
Categories: Equities, Earnings, IPOs, Regulation, Legal, Technology, AI, Semiconductors
Tickers: IBM, TSM, GOOG, GOOGL, GOOGM, GOOGN, META, SPCX, NFLX, TRV, UNH, SKHY
Sentiment: Mixed - Experienced worst day since 1987 after admitting customers are redirecting software budgets toward hardware Raised capex forecast to $64 billion, stoking fears that AI infrastructure spending is becoming unsustainable
Keywords: AI spending concerns, chip stocks, tech sector weakness, earnings, market volatility, semiconductor industry
Insights:
- IBM: Negative: Experienced worst day since 1987 after admitting customers are redirecting software budgets toward hardware
- TSM: Negative: Raised capex forecast to $64 billion, stoking fears that AI infrastructure spending is becoming unsustainable
- GOOG: Negative: Fell 2.2% after reports that Gemini AI model is running months behind schedule