NEW YORK, United States (US): US stocks ended lower on Tuesday as investors rotated out of artificial intelligence (AI)-related names and oil prices advanced following a new incident in the Strait of Hormuz, Xinhua reported.
The Dow Jones Industrial Average fell 0.25 per cent to 52,925.15. The S&P 500 sank 0.45 per cent to 7,503.85. The Nasdaq Composite Index shed 1.16 per cent to 25,818.69.
Six of the 11 primary S&P 500 sectors closed higher, led by energy and health care with gains of 3.03 per cent and 1.55 per cent, respectively. Industrials and technology were the main laggards, declining 1.67 per cent and 1.62 per cent.
Volatility persisted in the technology sector after Reuters reported that DeepSeek is developing its own chip, intensifying competition with major players including Nvidia.
Micron Technology fell 4.71 per cent, while KLA, Marvell Technology, Broadcom, and AMD also posted notable declines.
“Expectations are up, and fundamentals are struggling to meet these high sky-high demands, and that’s what’s fuelling today’s decline,” said Director of Research at FBB Capital Partners, Mike Bailey. “I would expect the rotations that we’ve seen to continue.”
Meanwhile, oil prices rose after Iran attacked a Qatari liquefied natural gas tanker near the Strait of Hormuz.
West Texas Intermediate crude for August delivery gained USD1.89 (approx. RM7.72), or 2.76 per cent, to settle at USD70.44 (approx. RM287.57) per barrel on the New York Mercantile Exchange.
Brent crude for September delivery rose USD2.17 (approx. RM8.86), or 3.01 per cent, to settle at USD74.16 (approx. RM302.76) per barrel on the London ICE Futures Exchange.
Most of the Magnificent Seven mega-cap technology stocks finished higher, though Tesla declined 4.02 per cent after leading gains the previous session.
SpaceX shares fell nearly seven per cent on its Nasdaq 100 debut, despite a slew of bullish analyst calls.
The financial sector is preparing for the start of second-quarter earnings season next week. Analysts expect strong results driven by robust capital markets activity and resilient commercial loan growth. – BERNAMA-XINHUA
