U.S. stocks opened mixed Tuesday as heavy losses in semiconductor shares pressured the Nasdaq Composite, while strong corporate earnings helped the Dow Jones Industrial Average climb.
The Dow rose 331 points, or 0.63%, to 52,546 at 9:35 a.m. ET, according to the supplied TradingView chart. The Nasdaq stood at 24,932, down 0.18%, at 9:44 a.m. ET. Meanwhile, the S&P 500 recovered toward the flat line after opening 17.6 points, or 0.24%, lower at 7,395.55.
Chip Stocks Weigh on the Nasdaq
Semiconductor stocks extended their decline as investors questioned whether rapid spending on artificial intelligence infrastructure can continue producing strong returns. Concerns about rising competition from Chinese chipmakers also hurt sentiment.
Micron Technology fell 8.4% in early trading, while Advanced Micro Devices lost 7.7% and Nvidia slipped 1.1%. The losses followed a sharp technology sell-off in Asia, where South Korea’s Kospi plunged 10.8%.
The Nasdaq chart shows the index below its 50-day exponential moving average near 25,625. Initial support sits around 24,750, followed by 24,500. A recovery above the moving average would strengthen the near-term outlook, while continued trading below it would keep pressure on technology shares.
Earnings Lift Dow Jones Stocks
Earnings helped support areas of the market outside the technology sector. Coca-Cola jumped 5.8% after reporting a 7% increase in revenue. Sherwin-Williams rose 7%, while Illinois Tool Works gained 3.7% after both companies posted stronger-than-expected quarterly profits.
UPS also raised its full-year sales and profit forecasts, while Boeing reported stronger revenue but a wider adjusted loss than analysts expected. Investors will turn to Visa and Seagate results after Tuesday’s closing bell.
The S&P 500 daily chart shows the index consolidating below its 50-day moving average near 7,472 but above its 200-day average near 7,008. The 7,470-to-7,550 area remains the first resistance zone. Support stands near 7,400 and 7,300, with a deeper chart level around 7,126.
Treasury Yield Falls Ahead of Fed Decision
The 10-year Treasury yield stood at 4.624% at 9:47 a.m. ET, down about 2.3 basis points. The decline followed a drop in crude oil prices and provided some relief for stocks, although the yield remained well above its 50-day moving average near 4.52%.
Investors also prepared for the Federal Reserve’s two-day policy meeting, which began Tuesday. The central bank will release its interest-rate decision at 2 p.m. ET Wednesday, followed by a press conference at 2:30 p.m. ET.
The early market split points to rotation rather than a broad sell-off. However, deeper chip losses could continue weighing on the Nasdaq and S&P 500, while steady earnings and lower Treasury yields could help the Dow maintain its lead.
