The Nasdaq Composite and S&P 500 finished lower as a chip-stock rally faded, while the Dow Jones Industrial Average rallied late to end in the green.
The tech-heavy Nasdaq and benchmark S&P 500 finished Tuesday down a respective 1% and 0.3%. Both indexes had positive starts to the session, then fell—the Nasdaq was at one point off 3.7%—ending the day off session lows. The blue-chip Dow ended 0.2% higher.
Shares of Marvell Technology (MRVL), which jumped nearly 10% yesterday, advanced after the opening bell, but reversed course, ending nearly 8% lower. Other stocks in the chip space—including Arm Holdings (ARM), Qualcomm (QCOM), Advanced Micro Devices (AMD)—sold off as well. The iShares Semiconductor ETF finished down almost 2%.
All of the Magnificent Seven tech giants finished lower except for Google parent Alphabet (GOOGL). Tesla (TSLA) and Nvidia (NVDA), the septet's only gainers yesterday, opened higher but closed 3% and 0.2% lower, respectively. Apple (AAPL) shares, which closed down almost 2% Monday after its annual Worldwide Developers Conference began, extended those losses, falling 3.6%.
"We've been talking about a potential correction, and the NASDAQ may have delivered a good chunk of it in one session between Friday and today," Nancy Tengler, CEO and CIO of Laffer Tengler Investments, said in written commentary. "Some are referring to this as a rotational move, but regardless the Summer Swoon has arrived, which means volatility will be with us for the near-term. Does this mean that the bull market is over? We think not but it also does not mean the selling is exhausted."
Oil prices were lower all day after President Donald Trump said last night that a deal between the U.S. and Iran to end their war could be reached in "two or three days." They pared declines after he wrote on Truth Social that "the Iranians shot down one of our highly sophisticated Apache Helicopters while patrolling over the Strait of Hormuz," and although the two pilots are uninjured, the U.S. would "respond to this attack." West Texas Intermediate futures, the U.S. crude oil benchmark, were down 3.4% to $88.20 a barrel at 4 p.m. ET, while front-month contracts of Brent crude, the global benchmark, settled 3% lower at $91.45.
"I do think the catalyst today was the shoot-down of the helicopter because we weren't doing so badly in the morning," Jim Lebenthal, Chief Market Strategist at Cerity Partners, said on CNBC. He added that "I think a real resumption of fighting in the Persian Gulf could make it worse, could tip this into a real correction," but that "bottom line, this is a consolidation, not a correction, not something worse."
Bitcoin was trading around $61,800, down from overnight highs around $63,800. The world's biggest cryptocurrency fell below $60,000 for the first time since October 2024 on Friday.
The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, was around 4.53%, down from Monday's close below 4.57%. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, declined 0.1% to 99.97. Gold futures fell 2% to $4,275 an ounce.
In post-earnings moves, J.M. Smucker (SJM) jumped 10%, SailPoint (SAIL) sank 11%, and Vail Resorts (MTN) fell 4.5%.
Investors' attention will turn tomorrow to the May Consumer Price Index reading. The CPI is seen having risen 4.2% year-over-year, which would represent the highest annual inflation in three years, according to a survey of forecasters by Dow Jones Newswires and The Wall Street Journal.