U.S. futures are under pressure as investors continue reducing exposure to semiconductor stocks despite another strong earnings report from TSMC. While AI demand remains healthy, profit-taking and valuation concerns are driving short-term volatility across the sector ahead of a busy day of earnings and economic data. 📊 Market Snapshot Nasdaq Futures: -1.01% S&P 500 Futures: -0.36% Dow Futures: +0.05% VIX: +4.91% U.S. 10-Year Treasury Yield: 4.595% WTI Crude Oil: $80.40 (+1.01%) 🚨 What's Driving the Market? The semiconductor sector remains the market's biggest drag. TSMC delivered another record quarter with 77% YoY profit growth, but investors continue to rotate out of chip stocks after their strong run, leaving Micron, Western Digital, Sandisk, and Dell under pressure in premarket trading. The pullback comes as investors reassess AI-related valuations, even though industry fundamentals remain strong. Rising Treasury yields and ongoing geopolitical tensions are also contributing to a more cautious tone across global markets. Meanwhile, June Retail Sales increased 0.2%, matching expectations and suggesting consumer spending remains steady despite a slower pace than the previous month. 👀 What to Watch Today Markets will focus on: Weekly Jobless Claims Philadelphia Fed Manufacturing Index Earnings from UnitedHealth, GE Aerospace, U.S. Bancorp, Abbott Laboratories, and TSMC Netflix earnings after the closing bell 📌 Market Theme The AI investment story remains intact, but investors are becoming more selective. Strong earnings alone are no longer enough to drive chip stocks higher, with valuations, institutional positioning, and macroeconomic data now playing a larger role in market direction.