"The tech sector is feeling the heat as semiconductor stocks tumble," said a market analyst as Nasdaq faced pressure from heavy losses in chipmakers early Tuesday. The Dow Jones, by contrast, climbed steadily thanks to solid corporate earnings, highlighting a split mood across the U.S. stock market.
By mid-morning, the Dow rose 331 points, about 0.63%, reaching 52,546. The Nasdaq dipped 0.18% to 24,932, weighed down by an 8.4% drop in Micron Technology, a 7.7% fall at Advanced Micro Devices, and a 1.1% decline in Nvidia. The sell-off echoed tech weakness overseas, with South Korea’s Kospi plunging over 10% on fears that the current surge in AI infrastructure spending might lose steam and face stiff competition from Chinese chipmakers. The index’s position below its 50-day exponential moving average around 25,625 signals potential continued pressure on tech names unless buyers return quickly.
Meanwhile, solid earnings reports gave the Dow and other sectors a boost. Coca-Cola jumped 5.8% after posting a 7% revenue increase, while Sherwin-Williams and Illinois Tool Works also gained on strong profits, rising 7% and 3.7% respectively. UPS raised its full-year outlook, and Boeing showed revenue growth despite a wider-than-expected adjusted loss. Investors await Visa and Seagate’s earnings after the market close, which could further shape the indices. The broader S&P 500 hovered near its flat line after opening lower, consolidating just below its 50-day moving average around 7,472 but maintaining support above 7,400.
Treasury yields dipped slightly, with the 10-year yield falling to 4.624% following a drop in oil prices, offering some relief to stocks ahead of the Federal Reserve’s policy meeting set to conclude Wednesday. The central bank's decisions on interest rates remain a key focus for traders, impacting market volatility and sentiment going forward.
this material is for informational purposes only and does not constitute financial advice
