Chip Stocks Drift Lower Amid Economic Data and Investor Shifts

The S&P 500 and Nasdaq face potential declines as semiconductor stocks weaken, although recent economic data offers some positive signals on consumer spending and jobless claims. Geopolitical risks involving the U.S. and Iran pose additional concerns, impacting global energy supplies and market sentiment.

The S&P 500 and Nasdaq were poised for a lower opening on Thursday due to a continued slump in semiconductor stocks, as investors analyzed fresh economic data for signs of the economy's health.

Despite a significant 77% rise in Q2 profit from advanced AI chipmaker TSMC, U.S.-listed shares fell 3.9% premarket. Semiconductor stocks had previously been among the biggest winners in this year's rally, driven by AI investment optimism.

U.S. indexes rose consecutively earlier in the week as inflation concerns waned following benign June inflation reports, and the Fed is anticipated to maintain its current stance at the upcoming meeting. However, tensions in the Middle East and potential energy supply disruptions add an element of risk, influencing market dynamics.