01:47 PM EDT, 07/18/2024 (MT Newswires) -- US equity indexes fell after midday Thursday as Taiwan Semiconductor Manufacturing Company's ( TSM ) results failed to inspire a wave of buying in semiconductor names and jobless claims increased more than forecast.

The Nasdaq Composite fell 0.5% to 17,899.3, with the S&P 500 down 0.5% to 5,562.6 and the Dow Jones Industrial Average 0.7% lower at 40,910.6. Healthcare and technology were among the steepest decliners, while real estate was among the trio of gainers.

Taiwan Semiconductor reported higher Q2 earnings as sales topped analysts' estimates. But, shares of the Taiwanese chipmaker caught in the crosshairs of geopolitics fell intraday. Of the 5 semiconductor manufacturers with a market capitalization of more than $200 billion, only one, Nvidia ( NVDA ) , was trading up intraday.

On Wednesday, the Nasdaq had its worst day since 2022 as the index sank 2.8% amid a sell-off in chip stocks following reports that the US may impose tighter export restrictions, according to a note from D.A. Davidson. This week, the technology sector looks set for the sharpest decline and real estate for the biggest gain, reflecting potential investor strategy to play the highly anticipated monetary policy easing in September while tackling the pitfalls of geopolitics.

San Francisco Fed President Mary Daly and Fed Governor Michelle Bowman are among the Fed speakers on Thursday. Both are voters on the Federal Open Market Committee this year. According to the FedWatch Tool, the market is pricing a 94% probability of an interest-rate cut in September.

In economic news Thursday, US initial jobless claims rose to 243,000 during the week ended July 13 from the upwardly revised 223,000 level in the previous week, compared with expectations for 229,000 in a survey of analysts compiled by Bloomberg. The four-week moving average climbed 1,000 to 234,750.

The Conference Board's measure of leading indicators fell 0.2% in June, versus the 0.3% decrease expected in a survey compiled by Bloomberg and a 0.4% decline in May. The contraction in the LEI index was the smallest in the previous three months.

The Philadelphia Federal Reserve's monthly manufacturing index rose to 13.9 in July after falling to 1.3 in June, above expectations for 2.9 in a survey compiled by Bloomberg. The index indicates a faster pace of expansion in the sector.

The US 10-year Treasury yield rose 3.7 basis points to 4.18%, and the two-year rate climbed 1.9 basis points to 4.45%.

Further, in company news, Domino's Pizza's (DPZ) second-quarter results rose year over year while the pizza restaurant chain temporarily suspended its long-term outlook for global net store growth. Its shares sank nearly 14% intraday, the worst performer on the S&P 500.

D.R. Horton ( DHI ) shares soared more than 11% intraday, the leader on the S&P 500, after the company reported better-than-expected fiscal Q3 results.

West Texas Intermediate crude oil rose 0.7% to $83.39 a barrel.

Gold fell less than 0.1% to $2,458.30 an ounce, and silver declined 0.5% to $30.23.