Chip Crisis Continues: TSMC's Price Warning and Market Volatility

Global markets showed mixed performance; Dow Jones rose 0.2%, S&P 500 fell 0.2%, while Nasdaq-100 dropped 0.7% amid renewed pressure on chip stocks. TSMC reported record second-quarter revenue but warned of higher prices, causing its stock to fall 1.6%. Meanwhile, U.S. strikes on Iran and oil price volatility are keeping investors on edge. Key economic data on consumer spending and jobless claims is expected at 8:30 a.m. ET.

Chip Sector Under Pressure

■TSMC achieved record Q2 revenue but saw its stock drop after warning of price increases.

■ASML and Intel also fell as the semiconductor sector faced supply chain challenges.

■Rising prices threaten Nvidia and AMD, which are critical for AI-driven demand.

Economic Data in Focus

■Retail sales figures will gauge consumer confidence amid AI optimism.

■Jobless claims data will provide insights into labor market conditions.

Iran Conflict's Impact

■U.S. airstrikes on Iran have escalated oil prices and disrupted supply chains.

■Trump's aides briefed him on potential escalation options, including increased bombing and ground forces.

Markets are showing investor risk aversion amid the chip crisis. TSMC's price warning signals a potential shift in long-term chip supply dynamics. The Iran conflict's impact on oil prices also requires careful monitoring in the energy sector.