{"id":65367,"date":"2026-07-24T16:38:13","date_gmt":"2026-07-24T20:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-sector-retreats-on-qualcomm-price-hikes-as-middle-east-tensions-flare\/65367\/"},"modified":"2026-07-24T16:38:13","modified_gmt":"2026-07-24T20:38:13","slug":"tech-sector-retreats-on-qualcomm-price-hikes-as-middle-east-tensions-flare","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-sector-retreats-on-qualcomm-price-hikes-as-middle-east-tensions-flare\/65367\/","title":{"rendered":"Tech Sector Retreats on Qualcomm Price Hikes as Middle East Tensions Flare"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>) shares fell nearly 2%<\/strong> after the company notified customers of <strong>double-digit price increases<\/strong> for smartphone processors effective September 1, citing an inability to absorb surging supplier costs.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as Saudi Arabia launched retaliatory airstrikes on the Houthi-held port of <strong>Hodeidah<\/strong> following a maritime blockade and attacks on Saudi oil tankers in the Red Sea.<\/li>\n<li><strong>U.S. markets closed mixed<\/strong> with the <strong>Nasdaq Composite<\/strong> dropping <strong>0.69%<\/strong> to 24,965.15, while the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> gained <strong>0.40%<\/strong> to finish at 51,919.20.<\/li>\n<li><strong>Morningstar DBRS<\/strong> shifted its outlook on <strong>Belgium\u2019s AA credit rating to Negative<\/strong>, warning that the nation&#39;s fiscal deficit is projected to be the largest in the euro area through 2028.<\/li>\n<li><strong>The Federal Reserve<\/strong> released updated <strong>H.8 data<\/strong>, showing total bank credit at U.S. commercial banks reached approximately <strong>$19.64 trillion<\/strong> as of late June, reflecting a steady 4.7% annual growth rate.<\/li>\n<\/ul>\n<h2>Qualcomm Price Hikes Rattle Smartphone Supply Chain<\/h2>\n<p>Qualcomm (<a href=\"\/stock\/QCOM\">QCOM<\/a>), the world\u2019s leading provider of smartphone processors, informed clients on Friday that it will implement <strong>double-digit percentage price increases<\/strong> for all products shipped after <strong>September 1, 2026<\/strong>. The company stated it has &quot;exhausted its ability to absorb higher costs&quot; from its own suppliers, including major foundry partner Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>).<\/p>\n<p>The announcement weighed heavily on the semiconductor sector, with the <strong>VanEck Semiconductor ETF (<a href=\"\/stock\/SMH\">SMH<\/a>)<\/strong> seeing significant volatility. Analysts suggest the price hike will likely be passed on to consumers, potentially raising the retail price of upcoming flagship Android devices. <em>Market sentiment remains cautious as rising component costs coincide with heavy capital expenditure in AI infrastructure.<\/em><\/p>\n<h2>Middle East Conflict Escalates with Hodeidah Strikes<\/h2>\n<p>Regional instability intensified as <strong>Saudi Arabia<\/strong> conducted airstrikes on the Yemeni port city of <strong>Hodeidah<\/strong>. The strikes, reported by Houthi-affiliated Al Masirah TV, follow a series of Houthi attacks on Saudi-flagged commercial vessels and the declaration of a &quot;maritime blockade&quot; against the Kingdom.<\/p>\n<p>The escalation has pushed <strong>Brent crude<\/strong> prices toward the <strong>$100 per barrel<\/strong> mark, though prices eased slightly late Friday on reports of potential mediation efforts. <em>The United Nations has warned that further hostilities risk a wider regional war involving Iran, threatening global energy flows through the Strait of Hormuz.<\/em><\/p>\n<h2>Wall Street Mixed Amid Tech Sell-Off and Geopolitical Risk<\/h2>\n<p>U.S. equity indexes finished the week on a fractured note. While the <strong>Dow Jones Industrial Average<\/strong> (<a href=\"\/stock\/%5EDJI\">^DJI<\/a>) rose <strong>207.55 points<\/strong>, the tech-heavy <strong>Nasdaq<\/strong> (<a href=\"\/stock\/%5EIXIC\">^IXIC<\/a>) fell <strong>172.54 points<\/strong> as investors rotated out of high-valuation chip stocks.<\/p>\n<p>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>) shares plummeted <strong>6%<\/strong> despite an earnings beat, as investors focused on the company&#39;s massive capital spending requirements. <em>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/%5EGSPC\">^GSPC<\/a>) remained nearly flat, closing down just 0.03% at 7,406.17, as gains in defensive sectors offset the retreat in technology.<\/em><\/p>\n<h2>Belgium Faces Credit Outlook Downgrade<\/h2>\n<p><strong>Morningstar DBRS<\/strong> changed the trend on the <strong>Kingdom of Belgium<\/strong> from Stable to <strong>Negative<\/strong>, while confirming its <strong>AA<\/strong> credit rating. The agency cited a &quot;weakened fiscal outlook,&quot; with the National Bank of Belgium projecting the deficit to widen to <strong>5.7% of GDP by 2028<\/strong>.<\/p>\n<p>Government debt is now forecast to rise toward <strong>115% of GDP<\/strong> over the next four years. <em>Persistent pressures from aging-related spending, rising interest costs, and increased defense expenditure are expected to keep Belgium&#39;s fiscal gap among the widest in the European Union.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Qualcomm (QCOM) shares fell nearly 2% after the company notified customers of double-digit price increases for smartphone processors 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