Stocks Settle Mixed as Chipmakers Climb and Financial Stocks Fall
On Tuesday, U.S. stock markets ended mixed with the S&P 500 closing unchanged while the Nasdaq 100 reached a record high due to strength in chipmaker and AI stocks. The Dow Jones Industrial Average fell by -0.36%. Lower crude oil prices eased inflation concerns and supported market sentiment after reports indicated Iran proposed reopening the Strait of Hormuz if U.S. sanctions are lifted. The broader market was weighed down by rising bond yields following hawkish comments from Federal Reserve officials Susan Collins and Tom Barkin, who warned that inflation could remain elevated for longer than expected. The Richmond Fed manufacturing index fell to a 7-month low, adding pressure on stocks. Energy producers and financials also underperformed. Overseas markets saw gains with the Euro Stoxx 50 rising to a 1.5-week high and China's Shanghai Composite reaching a two-week peak. Markets are currently pricing in a 53% chance of another Fed rate hike at its October meeting.
Tickers: $AVGO $DIA $MSFT $MU $QQQ $SPY
Topics: AI stocks chipmakers Dow Jones Fed comments Nasdaq 100 oil prices S&P 500