US stocks mixed as chip firms face new pressure

NEW YORK: Wall Street stocks were mixed early Tuesday as semiconductor firms came under renewed pressure and as investors awaited minutes from the US central bank’s recent policy meeting.

Around 20 minutes into trading, Dow Jones Industrial Average added 0.3 percent to 53,187.24, while the broad-based S&P 500 dipped 0.2 percent to 7,527.15.

The Nasdaq Composite Index slipped 0.7 percent to 25,930.59.

The movements followed losses in Asian markets, including a steep drop of 4.9 percent in Seoul’s key index after chip giant Samsung reported blockbuster profits but nonetheless fueled concerns over the AI boom’s sustainability.

“Some people blame it on profit-taking, other people are saying that these numbers were underwhelming and creating a renewed angst on those huge AI names,” said Art Hogan of B. Riley Wealth Management.

“It is taking a bit of a bite out of the chips here (in the US) this morning, which have been on a real rollercoaster,” he told AFP.

Hogan described the situation as an “on-again, off-again love affair with memory and the concept of potentially having gone too far too fast.”

On Tuesday morning, US trade data for May also showed that the country’s deficit widened to its biggest in more than a year. This was broadly in line with analysts’ expectations.

“The market showed little reaction to the report, keeping its eyes focused on the behavior of the semiconductor stocks, the broader market, interest rates, and the NATO meeting in Turkey that is being attended by President (Donald) Trump,” said Patrick O’Hare of Briefing.com in a note.

Investors will also be combing through the Federal Reserve’s latest meeting minutes, due Wednesday, to understand the central bank’s thinking about interest rates after its first meeting with Chairman Kevin Warsh at the helm.