U.S. stocks ended mixed on Tuesday, with the Nasdaq and S&P 500 closing in the red as chip stocks suffered a severe sell-off and oil prices extended gains, weighing heavily on market sentiment.
The Dow Jones Industrial Average rose 56.09 points, or 0.11%, to 49,760.56. The Nasdaq Composite dropped 185.92 points, or 0.71%, to 26,088.20. The S&P 500 fell 11.88 points, or 0.16%, to 7,400.96.
**Big Tech Stocks Split**
Performance among major tech names was mixed. Netflix gained 2.59%, Apple rose 0.72%, Meta added 0.69%, and Nvidia edged up 0.61%. On the downside, Tesla sank 2.61%, Microsoft fell 1.18%, Amazon dropped 1.18%, and Alphabet (Google’s parent) slipped 0.33%.
**Chip Stocks in Freefall**
Semiconductor stocks were crushed. Qualcomm plunged 11.46%, Intel tumbled 6.82%, SanDisk dropped 6.17%, AMD lost 2.29%, and the iShares Semiconductor ETF slid 3.15%. Analysts attributed the rout to rising U.S. inflation and escalating tensions in the Middle East after a spike in oil prices, which pushed investors toward safe-haven assets.
Micron Technology fell 3.61% after briefly driving the Nasdaq to a record high on Monday. The stock had surged over 37% last week and about 53% in the past month, fueled by a rally in memory chips.
**Chinese Stocks Mostly Lower**
The Nasdaq Golden Dragon China Index closed down 0.82%. Baidu fell 4.01%, Pinduoduo lost 3.11%, Bilibili dropped 2.99%, Zhihu declined 2.13%, Futu Holdings slipped 2.02%, Tencent ADR fell 1.98%, Tiger Brokers lost 1.88%, Alibaba dropped 1.84%, iQiyi shed 1.71%, Niu Technologies fell 1.33%, Li Auto dropped 0.69%, and Weibo declined 0.24%. On the upside, JD.com rose 3.14%, Gaotu gained 0.51%, NetEase added 0.68%, New Oriental edged up 0.27%, Nio rose 0.16%, and Xpeng inched up 0.06%.
**Market Overview**
According to China Central Television, Iran’s Foreign Ministry spokesperson stated that ending the conflict and lifting the blockade of the Strait of Hormuz are prerequisites for any negotiations with the U.S. The spokesperson added that Washington is demanding Iran’s “complete surrender,” not genuine dialogue, and that the responsibility for the blockade lies with the U.S., noting that a maritime blockade constitutes an act of war under international law.
On the economic front, the U.S. Labor Department reported that the Consumer Price Index (CPI) rose 3.8% year-over-year in April, up from 3.3% in March and marking the highest level since June 2023, driven by surging energy costs. On a seasonally adjusted monthly basis, CPI increased 0.6% in April, down from 0.9% in March but still the second-highest monthly gain since November 2022. Gasoline and fuel oil prices jumped significantly, contributing to the broader inflationary pressure.
“Inflation is climbing, and with the Middle East conflict ongoing and no progress in U.S.-Iran talks, the pressure will only deepen,” said Thomas Martin, senior portfolio manager at Globalt Investments. “Higher oil and commodity prices will increasingly weigh on consumers, and that pressure is likely to persist.”
Also on Tuesday, the U.S. Treasury reported a federal budget surplus of $215 billion in April, down 17% year-on-year despite rising tariff revenue. Higher spending and lower income narrowed the surplus, bringing the cumulative fiscal deficit for the year to $953 billion. Net interest payments on the national debt reached $97 billion, the largest expenditure category outside Social Security.
**Commodities**
Oil prices continued their rally. West Texas Intermediate crude for June delivery jumped 4.19% to settle at $102.18 per barrel. Brent crude for July delivery rose 3.42% to $107.77 per barrel.
Precious metals were mixed. COMEX gold futures for May delivery slipped 0.16% to $4,720.90 per ounce, while silver futures climbed 1.42% to $87.165 per ounce.
