A broad semiconductor selloff weighed on U.S. equities despite strong results from TSMC. While the company exceeded expectations and raised its full-year outlook, its higher 2026 capital expenditure guidance prompted investors to reassess future free cash flow and valuations across the chip sector. The resulting weakness in semiconductor stocks pressured the Nasdaq, while capital rotated into regional banks and other lower-valuation sectors, reflecting a shift in near-term market positioning.