* Memory-chip makers lead losses

* UnitedHealth ( UNH ) rises after 2026 profit forecast raise

* GE Aerospace falls despite lifting 2026 forecast

* US retail sales rise marginally in June

(Updates to market close)

By Stephen Culp and Ragini Mathur

NEW YORK, July 16 (Reuters) - Chip stocks pulled the Nasdaq

and the S&P 500 lower on Thursday as they continued to lead

broader market moves despite generally upbeat U.S. economic data

and a strong start to second-quarter earnings season.

Among the 11 major sectors in the S&P 500, technology

was one of the biggest percentage losers, with

semiconductor stocks weighing heavily on the broader

market.

Daily moves in chips have increasingly dictated the overall

movement of the major U.S. stock indexes, particularly the

tech-heavy Nasdaq.

"It comes strictly down to the weight of the chips in the

S&P 500," said Paul Nolte, senior wealth advisor & market

strategist at Murphy & Sylvest in Elmhurst, Illinois. "Three or

four years ago, it was 8%, and now it's over 20%. If you look at

the rest of the market, it's doing fine."

The weakness in chips, even after chip demand bellwether

TSMC posted a 77% jump in quarterly profit, demonstrated the

lofty expectations for a sector that has soared by nearly 70% so

far this year. U.S.-listed shares of the chipmaker lost

ground on the day.

Memory-chip makers were among the biggest laggards, with

SanDisk ( SNDK ), Western Digital ( WDC ), Seagate Technology ( STX )

, and Intel ( INTC ) among the largest percentage losers.

"This extreme volatility is very disconcerting for the

average investor when they see these huge swings in their

portfolio value," said Tim Ghriskey, senior portfolio strategist

at Ingalls & Snyder in New York. "(But) a number of the non-tech

sectors are doing well, so it's a real mix here."

According to preliminary data, the S&P 500 lost 37.78

points, or 0.50%, to end at 7,534.62 points, while the Nasdaq

Composite lost 383.76 points, or 1.47%, to 25,885.47.

The Dow Jones Industrial Average fell 109.13 points, or

0.21%, to 52,549.51.

The Dow's losses were cushioned in part by UnitedHealth

Group's ( UNH ) advance after the company beat Wall Street

earnings estimates and hiked its 2026 forecast.

United Airlines fell as surging oil prices weighed

on its forward guidance.

GE Aerospace slid even after the company lifted its

2026 profit forecast.

Analysts have set a high bar for second-quarter earnings

season. S&P 500 companies, in aggregate, are expected to post

year-on-year earnings growth of 24.8%. Technology earnings alone

are seen jumping 65.5% from the year-ago quarter, according to

the latest available data from LSEG.

SOLID RETAIL SALES, LOW JOBLESS CLAIMS, WEAK HOUSING DATA

A spate of U.S.economic indicators released on Thursday

showed solid core retail sales, a drop in jobless claims and

surging manufacturing activity in the Northeast.

Less positive data came from the housing sector, with a

bigger than expected drop in pending home sales and souring

homebuilder sentiment reflecting high borrowing costs and

strained affordability for would-be homebuyers.

The U.S. and Iran extended their barrage of airstrikes,

prolonging a week-long escalation that has all but voided last

month's truce. But Iran's release of a U.S. citizen suggested a

path remains for the two sides to avert the resumption of

all-out war.