0655 GMT - Taiwan Semiconductor Manufacturing Co.'s increased capital expenditure guidance likely unsettled investors and led to a tech selloff, says Swissquote Bank's Ipek Ozkardeskaya in commentary. TSMC's record profit in 2Q failed to boost its shares, suggesting chip makers' valuations have run ahead of themselves, she says. Investors are likely growing uncomfortable with the massive artificial-intelligence buildout due to overcapacity risks, but technology companies are continuing to spend, she adds. Major U.S. tech names are reporting their earnings next week, which could potentially turn the souring mood around. However, indication that companies like Alphabet are doubling down on infrastructure spending could further weigh on shares, she adds. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

July 17, 2026 02:55 ET (06:55 GMT)

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