Highlights
Major stock indexes slipped on Tuesday in a small risk-off move amid rotation out of AI chip stocks and on rising oil prices. The Dow Jones industrial average eased 0.3 percent while the S&P 500 was off 0.5 percent and the Nasdaq down by 1.2 percent. Bond yields and oil prices rose while the dollar was mixed against major currencies.
A drop in chip stocks kicked off in Seoul on a selloff in Samsung Electronics despite strong quarterly results. Stocks also reacted poorly as bond yields rose in response to rising oil prices after three more oil tankers were struck in the Persian Gulf and after a US official said the US was resuming its sanctions against Iranian oil sales after the Gulf incidents. Bond yields were also pressured by news the US consumer inflation expectations ticked up in June.
Sectors benefiting from investor rotation out of technology included energy, financials, health care/pharma, and consumer-facing sectors including discount retailers, staples, media, hotels and telecom.