Nasdaq 100 Outlook Turns Fragile as Chip Stocks Retreat Despite Easing Inflation
2026-07-16 11:48
•Fawad Razaqzada •Investing.com
•••••••••••• •••••• Axe Capital view
JSE Tech Sentiment Tested as Nasdaq Chip Slump Hits
Semiconductor stocks weigh on Nasdaq, casting shadows on JSE tech favourites like Naspers and Prosus.
The sharp pullback in US chipmakers like TSM and ARM signals trouble beyond Silicon Valley. Naspers and Prosus, which carry significant tech and global digital exposure, are unlikely to escape this chill. South African investors tempted by AI hype should reconsider, given the infrastructure bottlenecks and diminishing returns on growth expectations weighed down by rising interest rates. Meanwhile, the rand’s recent stability against the dollar may falter if global risk appetite ebbs further. Watch banks such as Standard Bank and FirstRand cautiously, as an uncertain global tech sector could dial back capital flows. However, if inflation surprises on the downside and Fed hawkishness eases, we could see a tech rebound. This view misses the mark if US inflation proves stickier than expected or if new AI breakthroughs reignite fervour faster than anticipated. this is just my opinion and not financial advice
Hold off on buying more Naspers and Prosus for now; trim positions if tech exposure feels high. Keep a close eye on USD/ZAR — a weaker rand could pressure earnings repatriation from global operations.
- Naspers
- USD/ZAR
- US inflation remains sticky, prompting more Fed tightening
- Unexpected surge in AI-related tech demand
6/10
US equity futures declined as semiconductor stocks weakened, with the Nasdaq 100 struggling near the 30K resistance level. Despite softer inflation data supporting growth assets, AI enthusiasm is cooling amid concerns about infrastructure investment returns and supply chain constraints. The Fed remains cautious despite improving inflation data, with focus shifting to retail sales and hawkish Fed speakers.
This article was originally published by Investing.com and has been adapted here for Axe Capital Trading News.
Publisher: Investing.com
Author: Fawad Razaqzada
Categories: Macro, Central Banks, Inflation, Economy, Equities, Earnings, Technology, AI, Semiconductors, Healthcare, Consumer, Retail
Tickers: TSM, ARM, ASML, SMH, UNH, NFLX
Sentiment: Mixed - Stock came under heavy selling pressure as part of broader semiconductor sector weakness despite record earnings Among the biggest laggards in the semiconductor sector, falling about 4%
Keywords: Nasdaq 100, semiconductor sector, AI stocks, inflation, Fed policy, chip stocks, portfolio rotation, technical resistance
Insights:
- TSM: Negative: Stock came under heavy selling pressure as part of broader semiconductor sector weakness despite record earnings
- ARM: Negative: Among the biggest laggards in the semiconductor sector, falling about 4%
- ASML: Neutral: Initially rallied on earnings but reversed course and ended the day down, showing mixed sentiment