Wall Street Rises While Chip Stocks Take a Hit

The New York Stock Exchange saw most of its major indices climb early Tuesday, yet shares linked to computer chips fell sharply across the globe. Investors appeared more optimistic about corporate earnings than before, but uncertainty around artificial‑intelligence growth has left chipmakers uneasy. The Dow rose about 385 points, while the S&P 500 hovered near its all‑time high. Meanwhile, the Nasdaq slipped a touch, reflecting the mixed mood in technology stocks. Large‑cap companies such as Coca‑Cola and Sherwin‑Williams posted better than expected earnings, giving the market a boost. These firms outperformed analysts’ forecasts for spring revenue, sending their shares higher. Chipmakers, however, struggled. Micron Technology’s stock dropped over eight percent after a quarter‑end surge that had taken its price to new highs. The memory‑chip giant’s revenue jumped more than four times last year, but investors fear that the demand surge fueled by AI may wane. Lower‑cost AI models from China could reduce the need for high‑performance memory, leading to a pullback in spending.

Other AI‑related names also fell. Advanced Micro Devices slid nearly eight percent, and Nvidia slipped just over one percent. In South Korea, SK Hynix and Samsung Electronics fell sharply, dragging the Kospi index down over ten percent and triggering temporary trading pauses. Analysts say the sell‑off may be an overreaction to China’s chip equipment progress, which is unlikely to threaten global leaders’ dominance. Oil prices eased further from last week’s two‑month peak, with Brent crude falling to about $84 a barrel. The drop in energy costs helped lower Treasury yields, easing pressure on the bond market. The 10‑year Treasury yield slipped to around 4. 62 percent, down from the previous day. Overall, Wall Street’s gains were tempered by concerns over chip supply and AI sustainability, while softer oil prices provided some relief to the broader economy.

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