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U.S. stocks fell on Tuesday as gains in semiconductor stocks lost momentum from the day’s gains, even as oil prices fell.
of S&P500 Although it decreased by 1.3%, Nasdaq Composite It fell 2.1%. of Dow Jones Industrial Average It fell 279 points (0.6%).
of iShares Semiconductor ETF It fell 5% after rebounding 6% on Monday. The ETF fell 10% on Friday, its worst day in six years, as investors worried that stocks of AI-powered chips were rising too fast. micron technology It fell more than 6% after rebounding 10% on Monday. The stock fell about 20% in two days last week and was down 13% on Friday. broadcomThe stock fell sharply for two days as well last week, but Monday’s rebound lost momentum and it fell almost 5%.
“I think everyone is a little nervous” ahead of SpaceX’s IPO, said Jay Hatfield, CEO of Infrastructure Capital Advisors, noting that Friday’s decline may have been related to SpaceX. “I think it’s going to be unstable until we get that back.”
The market had previously been rising as energy prices fell on hopes of a permanent cessation of hostilities in the Middle East.
West Texas Intermediate Crude Oil Futures The oil was down 5% to trade at about $86 a barrel, below $90, after U.S. Energy Secretary Chris Wright said there was a “very meaningful increase” in shipping traffic in the Strait of Hormuz. The move also came after President Donald Trump said a deal between the United States and Iran to reopen the Strait of Hormuz “immediately” could be reached within “a few days.”
Energy stocks in the S&P 500 fell about 2%, but lower oil prices had other positive effects. Materials stocks and consumer staples led the large-cap index, but real estate stocks were also boosted by better-than-expected existing home sales data.
Iran halted military attacks against Israel on Monday, but warned it would resume attacks if Israeli forces continue operations in Lebanon, Iran’s Foreign Ministry told CNBC on Monday. Hours later, Israeli Prime Minister Benjamin Netanyahu said the conflict between Iran and Hezbollah was “not over yet.”
OpenAI privately filed for an IPO late Monday, further increasing enthusiasm in the AI industry. The connection between space and AI SpaceX is set to debut on Friday in what will be the largest IPO in history. Some see the proposal as fueling an AI-driven bull market, but some investors are wary that the trend could top out at a valuation of $1.75 trillion.
