Marvell and Intel plunge — will the Nasdaq fall further?

The Nasdaq closed down 1.5% on the 16th (local time), dragged by a semiconductor sell-off

• Chips led the market lower — Marvell (MRVL) -8.7%, Intel (INTC) -5.8%, the chip sector -4.5% in a joint slide

• Risk-off sentiment pushed the VIX up to 16.73 (+6.8%); the S&P 500 -0.5% and Dow -0.2% also fell, oil -0.8%

• Elevated expectations for big-cap tech in earnings season added to the Nasdaq's decline

Tech sold off despite strong results — the backlash of raised expectations

The problem wasn't the results themselves but falling short of the bar — big-cap tech corrected together

• TSMC posted record Q2 profit and raised guidance on AI demand, yet shares fell on worries about expanded capital spending

• Netflix's Q3 guidance missed Wall Street estimates and shares tumbled — even good results lose to a bar set too high

• Alphabet dropped on a report of delays to its Gemini AI model, shaking confidence in AI momentum

• WATCH: the remaining big-cap tech earnings are the next test of "expectations vs. reality"

SpaceX slips below its IPO price — a confidence test for the blockbuster IPO

The post-listing rally gave way as the stock fell below its offering price, denting sentiment

• Short sellers piled in as the stock dropped below the IPO price, concentrating bearish bets

• A looming lockup expiry raised concerns about additional share supply

• The blockbuster-IPO narrative entered a confidence test right after listing