4:20pm: Nasdaq closes in the red
Wall Street lost ground by the closing bell on Tuesday as a selloff in semiconductor stocks overshadowed an early record for the Dow Jones Industrial Average and rising oil prices added to investor caution.
The Nasdaq led the declines, falling 1.2% to 25,819 as chipmakers came under heavy pressure. The S&P 500 slipped 0.5% to 7,504, while the Dow finished down 131 points, or 0.3%, at 52,925 after briefly crossing the 53,000 mark for the first time. The blue-chip index touched an intraday record of 53,060.10 before giving up its gains.
Technology stocks bore the brunt of the selling after Samsung's latest earnings report failed to reassure investors about the outlook for AI-related demand, triggering a broad retreat across the semiconductor sector. Shares of memory and chip companies including Micron, Broadcom and AMD all moved lower, dragging the broader tech sector with them.
Adding to the pressure, oil prices climbed as geopolitical tensions supported crude, raising fresh concerns about inflation and its potential impact on interest rates.
Meanwhile, newly added Nasdaq 100 constituent SpaceX had a difficult first day in the index, with shares tumbling 6.8% as investors took profits following last month's blockbuster IPO.
3:45pm: Proactive news headlines
- Trust Stamp Inc (NASDAQ:IDAI, ISE:AIID) said its Maltese subsidiary will directly participate in the EU’s Important Project of Common European Interest on Advanced Semiconductor Technologies, supporting Europe’s advanced chip supply chain initiatives.
- AtaiBeckley Inc. (NASDAQ:ATAI, XETRA:9VC) is drawing investor attention ahead of Phase IIb data for its oral DMT-based therapy VLS-01, with Jefferies analysts highlighting a potential fourth-quarter 2026 topline readout as a key milestone.
- Fineqia International Inc (CSE:FNQ) reported that global digital asset ETP assets under management fell 18.4% in June 2026 to $106.8 billion, marking the sector’s lowest level since September 2024.
- EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) signed a second equipment purchase agreement with Mexico’s Procescir for a 120-kilowatt Radiant Energy Vacuum dehydration machine to expand dried food production capacity.
- Snail Inc (NASDAQ:SNAL) launched three new ARK: Survival Ascended content releases and expects to recognize approximately $11 million in deferred revenue during the third quarter of 2026.
- Varon Corp (OTCID:OZSC) said its Ballislife Drink joint venture launched a limited-edition HYDRO Sports Drink featuring NBA player Desmond Bane and a piña colada flavor as part of its athlete-branded product strategy.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) appointed Chuck Weiser as chief financial officer, succeeding interim CFO Adrienne Anderson, who will remain with the company as a financial consultant.
- Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) reported its strongest month for sales orders in company history, with more than A$400,000 in June orders driven by demand for its THERMAL-XR energy-saving coating.
- Digi Power X Inc (NASDAQ:DGXX, FRA:1NQ0, NEO:DGX) said it is targeting a fiscal 2027 annualized revenue run rate of approximately $250 million to $300 million across its operating segments, including its AI data center business.
- EDM Resources Inc (TSX-V:EDM, OTC:SWNLF) provided an update on its Scotia Mine project, highlighting progress on permitting, financing and exploration as it works toward a production decision.
- Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) reported estimated June sales volumes of 2,990 barrels of oil equivalent per day while advancing drilling activities in Brazil and benefiting from higher natural gas prices.
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) settled its outstanding convertible debentures in cash, avoiding the issuance of approximately 28.9 million shares and reducing potential shareholder dilution.
2:50pm: Market movers
- Rivian Automotive Inc (NASDAQ:RIVN) shares fell after the electric vehicle maker launched a public offering of 75 million shares, with an option for underwriters to buy an additional 11.25 million shares, to raise funds for general corporate purposes.
- EnWave Corp (TSX-V:ENW, OTC:NWVCF, FRA:E4U) signed a second equipment purchase agreement with Mexico’s Procescir for an additional 120-kilowatt Radiant Energy Vacuum dehydration machine to expand production of dried food products and support toll drying operations.
- Snail Inc (NASDAQ:SNAL) launched three new content releases for ARK: Survival Ascended and expects to recognize about $11 million in deferred revenue during the third quarter of 2026 tied to the release of ARK: Genesis Part 1 Ascended.
- Shell PLC (LSE:SHEL, NYSE:SHEL) said stronger trading and refining margins should boost second-quarter results while announcing the $1 billion sale of its South African downstream business to ADNOC Distribution, covering 580 fuel stations and related operations.
1:45pm: Markets exposed
Global oil markets are underestimating the potential impact of attacks on commercial shipping in the Strait of Hormuz, according to deVere Group CEO Nigel Green, who warned investors may be overlooking risks to global energy supplies.
Despite reports of missile strikes on commercial vessels in the key oil transit route, Brent crude has remained near $73 a barrel, suggesting markets expect the conflict to remain contained. Green said that confidence could leave investors exposed if tensions escalate.
“The current pricing reflects confidence that the conflict will remain limited, but investors could be caught off guard if events deteriorate,” Green said, adding that markets should be demanding a larger risk premium given the strategic importance of the Strait of Hormuz.
12:30pm: SpaceX set to join Nasdaq 100
SpaceX is set to join the Nasdaq 100 later today, marking another milestone just weeks after its IPO.
The company now boasts a market value of about $2.11 trillion, making it the world's eighth most valuable company.
But its shares have been volatile since listing and are currently trading lower than their IPO price.
While index-tracking funds will need to buy the stock as it enters the Nasdaq 100, that buying boost is likely to be temporary. Once it fades later this month, the shares could face renewed pressure.
11:10am: AI stock pullback looks like consolidation
Selling pressure across semiconductor and AI-related stocks following Samsung's latest results appears to be a bout of profit-taking rather than the start of a deeper downturn, according to Zaheer Anwari, co-founder and CEO of The Revacy Fund.
While Samsung's earnings underscored strong AI-driven memory demand, investors sold the stock as much of the optimism had already been priced in, weighing on US semiconductor futures.
"The rally in AI stocks has been intact for months, and for now this still looks more like consolidation within that structure than the start of a reversal," Anwari said. He added that the firm continues to favor AI infrastructure and chipmakers, arguing that strong memory demand and long-term AI capital spending support the sector's structural growth outlook.
10am: Nasdaq falls as chips sell off
Wall Street was mixed in early trading, with the Nasdaq losing 1.0% as investors rotated out of AI and semiconductor stocks. The S&P 500 fell 0.4%, while the Dow Jones was little changed at 53,067.
The chip sector was under heavy pressure, with Applied Materials down almost 10%, Lam Research, KLA, Western Digital and Intel all losing around 8%, while AMD and Micron both slid over 7%. Nvidia and Broadcom both slipped around 2%.
The sector was rattled by Samsung's post-earnings sell-off.
Defensive stocks supported the Dow, with Johnson & Johnson (NYSE:JNJ) and Verizon adding over 3%, followed by Coca-Cola, Procter & Gamble and McDonald's advancing over 2.5%.
8am: Mixed open expected
US markets are set for a mixed open on Tuesday, with technology stocks expected to come under pressure after Samsung delivered record quarterly profits that still failed to satisfy investors, raising fresh questions about AI valuations.
Nasdaq futures were down 1.1% ahead of the opening bell, while S&P 500 futures slipped 0.2%. Dow futures bucked the trend, rising 0.3% or around 150 points.
This followed a strong session for Wall Street, with the Dow Jones climbing 0.3% to a record close of 53,055. The S&P gained 0.7% to 7,537, while the Nasdaq jumped 1.1% to finish at 26,121.
The mood shifted overnight after Samsung forecast operating profits comfortably ahead of consensus expectations, but the shares fell almost 7%.
The sell-off dragged South Korea's Kospi down almost 5%, knocked other Asian markets and is expected to weigh on US semiconductor names.
Another focus for investors will be SpaceX, which joined the Nasdaq-100 overnight after becoming eligible under revised index rules.
The inclusion is expected to trigger billions of dollars of passive buying from index-tracking funds, with JPMorgan estimating around $4.3 billion of demand for the stock.
Away from equities, oil rose around half a dollar to trade above $69 a barrel as geopolitical tensions around the Strait of Hormuz offset expectations of higher OPEC+ supply.
Gold slipped to around $4,130 an ounce, while today's economic calendar is light, a day ahead of the release of the Federal Reserve's June meeting minutes.
Tuesday's releases include the trade balance, the RCM/TIPP economic optimism index and the New York Fed's latest consumer inflation expectations survey. The ADP employment report, which has recently moved to weekly publication, will also be monitored for fresh signs of labour market strength ahead of weekly jobless claims data.