Wall Street opened sharply divided Tuesday as strong corporate earnings and another decline in oil lifted blue-chip and consumer shares, while a global selloff in semiconductor stocks dragged the technology-heavy Nasdaq lower.
The Dow Jones Industrial Average opened 282.80 points higher, or 0.54%, at 52,492.88. The S&P 500 fell 17.60 points, or 0.24%, to 7,395.55, while the Nasdaq Composite dropped 107 points, or 0.43%, to 24,825.07. By 9:35 a.m., the Dow’s advance had widened to roughly 385 points, the S&P 500 was nearly unchanged and the Nasdaq was down about 0.6%.
Beneath the mixed index readings, most U.S. stocks were advancing. Better-than-expected results from Coca-Cola, Sherwin-Williams and Illinois Tool Works supported consumer and industrial shares, but the heavy influence of semiconductor companies kept the broader S&P 500 near flat and pushed the Nasdaq lower.
Tuesday’s opening was less a broad market retreat than a forceful rotation away from the most expensive parts of the artificial-intelligence trade.
Micron Technology fell about 8.4%, Advanced Micro Devices lost approximately 7.7%, and Nvidia declined about 1.1% in early trading. Western Digital, Seagate and other memory-related companies also came under pressure as investors questioned whether extraordinary AI infrastructure spending can continue producing the growth embedded in current valuations.
Concern intensified after South Korea’s Kospi plunged 10.8%, temporarily triggering trading halts as SK Hynix and Samsung Electronics fell sharply. Reports of progress in China’s domestic chipmaking equipment added to fears that competition could reduce demand or pricing power for established semiconductor suppliers.
Coca-Cola moved in the opposite direction, rising about 5.8% after quarterly revenue increased 7% and results surpassed expectations. Chief Executive Henrique Braun described the operating environment as dynamic, but the company’s performance reinforced the view that global beverage demand and pricing remain resilient.
Sherwin-Williams gained roughly 7% after posting stronger profit and raising its full-year outlook. Net sales increased 7.5% to $6.79 billion, supported by pricing actions, new accounts and market-share gains. Illinois Tool Works advanced approximately 3.7% after its quarterly results also exceeded expectations.
UPS reported $22.8 billion in second-quarter revenue and raised its full-year revenue, operating-profit and adjusted earnings targets. Beneath the stronger outlook, the delivery company recorded $891 million in after-tax transformation charges tied largely to workforce reductions and network restructuring.
Boeing reported a larger-than-expected quarterly loss after recording a $280 million charge connected to rising engineering costs for the Air Force One replacement program. Improved aircraft production and $631 million in free cash flow helped offset the setback, and Boeing maintained its expectation of producing between $1 billion and $3 billion in free cash flow for the full year.
Morning Economic Reports
The Census Bureau reported at 8:30 a.m. that the U.S. goods-trade deficit narrowed to $101.5 billion in June, down $4.4 billion from May’s revised $105.9 billion. Exports fell $3.8 billion to $204.7 billion, but imports declined by a larger $8.2 billion to $306.2 billion.
Wholesale inventories rose 0.3% to $945.9 billion, while retail inventories were virtually unchanged at $831.3 billion. Softer imports and limited retail inventory accumulation could restrain measured economic activity, though a smaller trade deficit may provide support when second-quarter gross domestic product is released Thursday.
Housing offered a mixed picture. The Federal Housing Finance Agency said single-family home prices rose 0.3% in May and were 2.2% higher than a year earlier. Gains varied widely by region, ranging from a monthly decline of 0.6% in the Pacific division to an increase of 1.4% in the East South Central region.
Consumer confidence and the Census Bureau’s second-quarter housing-vacancy and homeownership report were scheduled for release at 10 a.m. Their results had not yet been incorporated into verified market reporting at the cutoff for this opening recap.
Oil and Bonds
Brent crude fell another 2.2% to about $83.97 a barrel, extending its reversal from last week’s brief move above $100 as investors responded to reduced Middle East tensions and prospects for U.S.-Iran diplomacy.
Relief in energy markets helped lower Treasury yields, with the 10-year yield easing to roughly 4.62% from 4.65% Monday. Lower oil and bond yields supported industrial, consumer and interest-rate-sensitive shares, though they were not enough to overcome the semiconductor decline inside the Nasdaq.
What to Watch Through the Closing Bell
Chip stocks remain the session’s central test. A stabilization in Micron, AMD and Nvidia could allow the S&P 500 to join the Dow’s advance, while continued selling risks spreading into software, data-center and other AI-related companies.
Boeing executives are scheduled to discuss results and the company’s outlook at 10:30 a.m. ET. Investors will be listening for updates on aircraft-production rates, cash generation and the rising cost of delayed defense programs.
Federal Reserve officials also began their two-day policy meeting Tuesday. The central bank will release its interest-rate decision Wednesday at 2 p.m. ET, followed by Chair Kevin Warsh’s news conference at 2:30 p.m.
After the closing bell, Visa and Seagate Technology are among the companies scheduled to report. Visa’s results will offer a fresh look at consumer spending, while Seagate’s report will arrive amid the sharpest semiconductor and data-storage selloff in months.
Tuesday’s market is delivering two messages at once: corporate profits remain strong enough to support much of the economy, but investor tolerance for uncertain AI returns is rapidly narrowing.
JBizNews Desk | Wall Street | New York
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