S&P Retreats from Records as Chip Stocks Decline
The S&P 500 and NASDAQ Composite fell on Tuesday, a day after both indexes hit fresh records, as traders weighed the latest earnings reports and new trade developments.
The Dow Jones Industrial Average eked higher 13.73 points to 44,336.80.
The much-broader index gave back 8.86 points to 6,296.74.
The NASDAQ stepped back 94.29 points to 20,879.89.
The market was bogged down by a decline in chip stocks, with Broadcom more than 2% lower and artificial intelligence darling Nvidia shedding almost 2%, after The Wall Street Journal reported that SoftBank and OpenAI’s $500-billion AI project has faced difficulties in getting underway, scaling down its near-term plans.
Adding to downbeat sentiment in the sector, NXP Semiconductors pulled back more than 1% after the company’s latest quarterly results and guidance disappointed investors.
Meanwhile, shares of aerospace and defense name Lockheed Martin were down 8% after the company’s revenue for the second quarter missed analyst estimates.
Similarly, Philip Morris lost 8% after the tobacco company’s second-quarter revenue also fell short.
This comes as 88 S&P 500 companies have reported, with more than 82% of those topping analysts’ estimates, according to FactSet data.
Eyes are on commentary from companies about macroeconomic certainty, the impact of tariffs and details on demand and spending related to AI.
Prices for the 10-year treasury climbed, lowering yields to 4.34% from Monday’s 4.38%. Treasury prices and yields move in opposite directions.
Oil prices were lower 84 cents to $66.36 U.S. a barrel.
Gold prices popped $33.00 to $3,439.40 U.S. an ounce.
