Most Wall Street Stocks Rise as Oil Falls, but Chipmakers Extend Sell-Off/ Newslooks/ WASHINGTON/ J. Mansour/ Most US stocks advanced Tuesday following strong corporate earnings, although sharp losses among chipmakers pushed the S&P 500 and Nasdaq lower. Micron Technology dropped 10.8%, AMD lost 9.6% and declines in Samsung and SK Hynix sent South Korea’s market down 10.8%. Brent crude fell 2.4% to $83.85 as investors hoped US-Iran negotiations could restore oil shipments through the Strait of Hormuz.
Quick Look
- The S&P 500 slipped 0.2% in morning trading.
- The Dow gained 402 points, or 0.8%.
- The Nasdaq composite fell 1.1%.
- Most stocks in the US market advanced.
- Coca-Cola rose 7.1% after reporting stronger revenue.
- Sherwin-Williams gained 8.3%.
- Micron Technology dropped 10.8%.
- Advanced Micro Devices fell 9.6%.
- Nvidia declined 1%.
- South Korea’s Kospi plunged 10.8%.
- Brent crude fell 2.4% to $83.85 per barrel.
- The 10-year Treasury yield declined to 4.61%.
Full Rewritten Story
Most US Stocks Rise Despite Index Declines
NEW YORK — Most Wall Street stocks advanced Tuesday as several major companies reported stronger-than-expected quarterly earnings, but steep losses among artificial-intelligence and semiconductor companies pulled major indexes in different directions.
The S&P 500 slipped 0.2% in morning trading, even though a majority of its constituent companies gained.
The Dow Jones Industrial Average rose 402 points, or 0.8%, as of 10 a.m. Eastern time.
The technology-heavy Nasdaq composite declined 1.1%.
The contrasting moves reflected the unusually large influence that the biggest technology companies exert over market indexes.
Coca-Cola Jumps After Revenue Growth
Coca-Cola rose 7.1% after reporting that its quarterly revenue increased 7%.
CEO Henrique Braun described the environment as “a dynamic consumer landscape.”
The company’s performance helped support consumer-oriented stocks and contributed to the Dow’s gain.
Investors are watching corporate earnings for indications of how companies are managing inflation, tariffs, higher energy expenses and changing consumer behavior.
Industrial Companies Report Strong Profits
Sherwin-Williams climbed 8.3% after reporting earnings that exceeded analysts’ expectations.
Illinois Tool Works rose 4.8% following its stronger-than-anticipated quarterly results.
Corporate profits generally influence stock prices over the long term, and expectations for the current earnings season are elevated because the US market remains close to its record high.
Companies must deliver strong earnings and optimistic forecasts to justify valuations that have increased substantially over the past year.
Chipmakers Face Growing Pressure
The highest expectations are concentrated among semiconductor manufacturers and other companies that benefited from the artificial-intelligence investment boom.
Micron Technology’s shares more than tripled during 2026 as demand for computer memory accelerated.
The company’s revenue during the quarter ending May 28 was more than four times its level from the same period a year earlier.
Investors are now questioning whether that rate of expansion can continue.
Micron and AMD Lead Declines
Micron fell 10.8%, making it the largest single drag on the S&P 500.
Advanced Micro Devices dropped 9.6%, while Nvidia declined 1%.
The losses reflected concern that companies purchasing large quantities of memory chips and computing equipment could reduce investment if AI fails to generate the expected gains in productivity and profit.
Lower-cost AI models developed in China could also reduce demand for memory and basic computing power.
SpaceX Falls to Lowest Trading Level
SpaceX, which owns the xAI business in addition to its rocket operations, fell 2.2%.
Its shares briefly approached $107, their lowest level since the stock began trading one month earlier.
The price had previously climbed above $225.
The decline indicated that investor unease was spreading beyond traditional semiconductor manufacturers to other companies closely associated with AI.
South Korean Market Plunges
Chip-stock losses were even more severe in overseas trading.
Sharp declines in SK Hynix and Samsung Electronics pulled South Korea’s Kospi index down 10.8%.
The losses became so large that officials temporarily halted trading at several points in Seoul.
SK Hynix and Samsung are major global producers of memory chips used in data centers, smartphones and AI systems.
China’s Chip Progress Concerns Investors
Morningstar equity analyst Jing Jie Yu said investors appeared worried about China’s improving ability to manufacture semiconductor equipment.
“We believe the market was likely spooked by the progress of China’s chipmaking equipment capabilities, and was worried that this progress would threaten the competitive position of global chipmaking and chip equipment leaders,” Yu said.
However, he argued that the market reaction was excessive.
“That said, we believe the sell-off today is largely a knee-jerk reaction and overdone,” he said.
Yu said the leading global semiconductor companies were unlikely to lose their dominant positions in a meaningful way in the near term.
Major AI Spenders Prepare to Report
Several of the largest purchasers of AI chips and data-center equipment are scheduled to release quarterly earnings this week.
Meta Platforms and Microsoft will report Wednesday, followed by Amazon on Thursday.
Investors will closely examine how much those companies plan to spend on AI infrastructure.
Any reduction in projected capital expenditures could increase pressure on chipmakers. Continued spending growth could ease concerns that AI demand is peaking.
Market Rotation Could Support Stocks
AI-related companies have grown so large that their price movements carry far more weight in major indexes than those of smaller businesses.
That explains why the S&P 500 declined despite gains among most of its members.
Some strategists view the broader gains as a potentially healthy market “rotation.”
A rotation occurs when investors move money out of heavily favored sectors and into less-popular parts of the market.
If industrial, consumer and other stocks continue rising, the broader market could remain resilient despite declines in AI companies.
Brent Crude Falls Below $84
Oil prices continued retreating from the two-month high reached during the previous week.
Brent crude for October delivery fell 2.4% to $83.85 per barrel.
The September contract had briefly reached $102 per barrel late the previous week as fighting in the Middle East intensified.
Oil prices have fallen since the United States and Iran paused attacks and mediators reported progress toward renewed negotiations.
Hormuz Talks Ease Supply Fears
The Strait of Hormuz remains a major source of uncertainty for energy markets.
Escalating fighting raised fears that additional attacks could further reduce the global flow of oil.
Hopes that Washington and Tehran could reach an arrangement allowing tankers to resume using the strait helped push prices lower Tuesday.
The waterway normally carries a significant share of the world’s traded oil and gas.
Any renewed military escalation or breakdown in negotiations could quickly reverse the decline in crude prices.
Treasury Yields Decline
Lower oil prices eased some inflation concerns and helped push Treasury yields downward.
The yield on the 10-year Treasury fell to 4.61% from 4.65% late Monday.
Bond yields generally decline when investors expect slower inflation or weaker economic growth.
Lower yields can also support stock prices by reducing borrowing expenses and making bonds somewhat less competitive with equities.
Consumer Confidence Weakens
A weaker-than-expected report on US consumer confidence also pressured Treasury yields.
The Conference Board said fewer Americans reported feeling positive about current business conditions.
The reading added to concerns that persistent inflation, high gasoline prices and uncertainty about the economy are affecting household sentiment.
Investors will use upcoming earnings and economic reports to determine whether that pessimism is beginning to reduce consumer spending.
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