Weakness in semiconductor shares weighs on Nasdaq
- S&P 500 dipped 0.3% while Nasdaq Composite Index fell 1.3%
Wall Street stocks were mostly lower due to declining oil prices and a retreat in semiconductor shares, fueled by concerns over China's chip industry advancements.
- Declining oil prices and Middle East resolution hopes.
- Semiconductor stock retreat following China's chip breakthrough.
- Analyst concerns over tech stock valuations and volatility.
NEW YORK: Wall Street stocks were mostly lower Tuesday as markets digested another decline in oil prices while semiconductor shares were in retreat.
Crude prices were down about two percent as markets hoped a pause on military strikes between the United States and Iran would be a step towards a resolution of the war in the Middle East.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.5 percent to 52,493.61.
The broad-based S&P 500 dipped 0.3 percent to 7,390.65, while the tech-rich Nasdaq Composite Index fell 1.3 percent to 24,614.64.
Shares of US semiconductor shares such as Sandisk, Intel and Micron were sharply lower after a report of a technological breakthrough that could accelerate the growth of China’s computer chip industry.
“People still want to be invested in technology, but they’re getting a bit nervous at some of the swings,” said Steve Sosnick of Interactive Brokers.
“We’ve had such big runs in so many tech stocks that there’s no room for disappointment,” Sosnick said. “When you’re priced to perfection, you have to deliver perfection.”
Shares of Boeing rose 2.7 percent following the company’s earnings, while Coca-Cola jumped 5.8 percent.