Semiconductor shares, which have led the broader market’s move in recent sessions, initially led ‌the selloff, which broadened ⁠as the ⁠session progressed.

All three major U.S. stock indexes closed lower on the day and posted weekly losses.

The Philadelphia SE Semiconductor Index logged its steepest weekly ​loss in over a year, and has tumbled nearly 18% so far in July. Even so, the index remains up about ​65% year-to-date, compared with the S&P 500’s nearly 9% gain over the same time frame. Some investors in the artificial intelligence space have begun positioning for a slowdown in the nearly trillion-dollar spending boom, with some active managers already scaling back their exposure, ​according to a Reuters analysis.

“It’s like the market has chip fatigue,” said ⁠Ryan Detrick, chief ‌market strategist at Carson Group in Omaha, Nebraska. “Chip stocks are down three of the ​last four weeks, ​and it’s the same worries, the same concerns; those stocks got way ahead of themselves, and ⁠now they’re coming back to Earth.”

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According to preliminary data, the S&P 500 ​lost 75.99 points, or 1.01%, to end at 7,457.78 points, while the Nasdaq Composite ​lost 370.83 points, or 1.40%, to 25,511.12. The Dow Jones Industrial Average fell 394.01 points, or 0.75%, to 52,158.96. Among the major sectors of the S&P 500, energy stocks were the biggest gainers, benefiting from spiking crude prices amid signs of escalating hostilities in the Iran war.
Q2 EARNINGS SEASON GETS OFF TO AN UPBEAT STARTSecond-quarter earnings season is still in its early days, with 49 of the companies in the S&P 500 having reported. Of those, 90% have delivered better-than-expected ‌results, according to LSEG.

Analysts now see year-on-year S&P 500 earnings growth of 26.0%, in aggregate, up from the 19.2% expectations as of April 1, per LSEG.

“It’s early in earnings season, but we’re off ​to a tremendous start,” ​Detrick added. “Over the next several ⁠weeks, we’re going to get a lot more sectors and industries reporting. But so far, the banks have really started us off on the right foot.” Netflix tumbled after the company’s weaker-than-expected earnings forecast, raising doubts about the sustainability of the content ​growth momentum. Uber Technologies dropped after the rideshare app announced it would acquire Germany’s Delivery Hero in a deal worth nearly $15 billion. Intuitive Surgical shares slid after the medical device maker kept its da Vinci procedure growth forecast unchanged and warned insurance-plan changes may be delaying patient care. On the economic front, consumer sentiment increased to a five-month high in July, but single-family housing starts and building permits dipped, and industrial output increased by a meager 0.1%.

Shares of Trevi Therapeutics jumped 13.10%, or $2.27, to $19.64 in Friday morning trading, as investor attention turned to the clinical-stage biopharmaceutical company’s presence at a major European medical conference focused on chronic cough treatment.

The New Haven, Connecticut-based company has had representatives at the European Respiratory Society’s Cough Conference in London this week, running from Wednesday through Friday. Trevi Chief Executive Jennifer Good and Chief Development Officer James Cassella have been presenting the company’s clinical trial results for Haduvio, its lead investigational therapy, at the conference, discussing findings the company says demonstrate the drug’s advantages in treating chronic cough associated with several difficult-to-manage lung conditions.

Haduvio, an oral extended-release formulation of nalbuphine, is being developed by Trevi to treat chronic cough in patients with idiopathic pulmonary fibrosis, or IPF, as well as chronic cough associated with non-IPF interstitial lung disease and refractory chronic cough, a condition that persists without an identifiable underlying cause. According to the company, Haduvio is the first and only investigational therapy to demonstrate a statistically significant reduction in cough frequency in clinical trials spanning both IPF-related chronic cough and refractory chronic cough populations. The drug works by acting on the cough reflex pathway both centrally and peripherally, functioning as what the company describes as a kappa agonist and mu antagonist, targeting opioid receptors involved in regulating the chronic cough response.

Trevi’s presentation in London builds on data from its Phase 2b CORAL trial, which evaluated nalbuphine extended-release specifically in patients with IPF-related chronic cough. Primary and subgroup analyses from that trial, including breakdowns by baseline cough count and background use of anti-fibrotic medications, were previously accepted for oral presentation at the American Thoracic Society’s 2026 International Conference earlier this year, underscoring the growing scientific interest in the trial’s results as Trevi works toward advancing Haduvio through additional pivotal studies.

The company has described chronic cough associated with IPF and non-IPF interstitial lung disease as a substantial and underserved market opportunity, citing an estimated 140,000 patients in the United States affected by the condition. Trevi has positioned Haduvio as potentially the only investigational therapy currently addressing this specific unmet medical need with meaningful commercial potential, with the company’s own investor materials pointing to peak sales potential across its target indications reaching as high as $6 billion if the drug successfully advances through further clinical trials and regulatory review.

Friday’s share price jump adds to a volatile but generally upward trajectory for Trevi’s stock so far this year. The stock’s 52-week range spans from a low of $6.50 to a high of $20.15, reflecting a dramatic run-up in valuation over the past twelve months as clinical trial data and analyst coverage have accumulated. As of Friday’s trading, shares remained just below that 52-week high, putting the stock within striking distance of a new record.

Wall Street analysts have generally maintained a bullish stance on the company. According to data compiled by Public.com, ten analysts covering the stock have arrived at a consensus Strong Buy rating as of early July, with an average price target of $21.10. Individual analyst targets have varied more widely: Morgan Stanley raised its price target on Trevi to $20 from $18 following the company’s first-quarter results in May while maintaining an Overweight rating, and Clear Street lifted its target to $29 from $21 earlier in May. Additional coverage from firms including Stifel Nicolaus and H.C. Wainwright has similarly maintained Buy ratings on the stock in recent weeks, according to data tracked by CNBC.

Trevi has also taken steps this year to strengthen its balance sheet ahead of continued clinical development. The company closed an underwritten stock offering in June that raised net proceeds of approximately $162 million, with underwriters fully exercising their option to purchase additional shares as part of the deal. According to the company, the additional capital extends its expected cash runway into 2030, providing funding through the potential FDA approval of Haduvio for IPF-related chronic cough and supporting continued advancement of the company’s broader pipeline across its other targeted indications.

Not all recent developments have been unambiguously positive for the stock. Trevi Therapeutics was recently removed from several Russell stock indexes, including the Russell 3000E and Russell Microcap index families, as part of a periodic index reshuffling process. Such removals can sometimes trigger forced selling from index-tracking funds, though the stock’s continued strength in recent sessions suggests any technical pressure from the index changes has been outweighed by broader investor enthusiasm tied to the company’s clinical progress and conference presentations.

Trevi’s next major scheduled catalyst is its upcoming earnings report, expected August 6, when the company is likely to provide further updates on the progress of its ongoing Phase 3 trials for Haduvio in IPF-related chronic cough, along with any additional data emerging from this week’s presentations in London. The company was founded in 2011 by Thomas R. Sciascia and Jennifer L. Good and has built its pipeline around nalbuphine-based therapies through a license agreement with Keenova Therapeutics for various formulations of the compound.

With a market capitalization now in the range of $2.5 billion to $2.6 billion, Trevi remains a mid-cap biotechnology name whose valuation continues to hinge heavily on the outcome of its ongoing and upcoming clinical trials rather than existing product revenue, given that Haduvio has not yet received regulatory approval from the U.S. Food and Drug Administration or any other regulatory authority. Some independent analysts have cautioned that the company’s current valuation may not yet fully reflect the risks inherent in bringing a novel therapy through the remaining stages of clinical development and eventual commercial launch, even as the stock has continued climbing on the strength of its trial data and growing analyst support. For now, Friday’s rally reflects renewed investor optimism following the company’s presence at one of the field’s most closely watched medical conferences this year.