The Dow Jones outperformed its peers but ended with losses of 120 points, having shed another 270 points on Monday as well. The S&P 500 fell 0.7%, while the Nasdaq Composite ended with losses of 1.3%. The Nasdaq 100, which comprises particularly of chipmaking companies, shed over 500 points or 1.7% on Tuesday.
Chipmakers, which had outperformed during Monday’s down day, witnessed strong profit booking on Tuesday with shares of Nvidia and Broadcom declining 2.5% and 3.5% respectively. However, their peers saw a bigger and sharper fall, with Intel, Micron, Western Digital, Sandisk, Marvell Technology, and the SK Hynix ADR ending with cuts between 7% and 9%.
Bond yields continued to remain at elevated levels with the US 30-year yield topping 5.33% on Tuesday, making a new 19-year high. Not just the US, the 10-year yield in Japan is at a three-decade high, while Germany and France’s 30-year bond yield has surged to the highest level since 2011 and 2008 respectively.
Crude oil prices also remained at elevated levels, adding to the pressure on Wall Street. Brent crude closed above the mark of $91 after US President Donald Trump declared on Truth Social that there are no talks ongoing or scheduled with Iran but the Strait of Hormuz remains open and operational.
Sentiments also remained tense in the oil market after the UAE accused Iran of firing two ballistic missiles towards its territory, a claim that Iran denied and warned the former of making baseless accusations.
Home Depot, the largest home improvement company in the US, reported second quarter results on Tuesday that were better than expectations. However, the stock ended little changed as the management said that they are currently operating in “frozen housing market conditions”, without elaborating further.The management also highlighted that customers are worried about inflation, rising costs, and the uncertainties surrounding the ongoing situation and therefore, despite having the means to spend, they are hesitant to do so.
Ahead of today’s trading session, the street will be looking towards the minutes of the recently concluded Fed policy meeting, where members had voted in a 9-3 decision to keep rates unchanged. Results from companies like Lowe’s and Target will also be reported before market open.
