US Equity Markets Lower as Semiconductor Stocks Fall, Crude Oil Prices Rise

MT Newswires Live04:09

US equity indexes closed lower on Tuesday as semiconductor stocks pulled technology stocks lower and after an attack on a Qatari vessel sent crude oil prices higher.

* Consumer expectations for one-year US inflation growth jumped to 3.7% in June from 3.5% in the previous month, according to a survey released by the New York Federal Reserve Bank.

* The US international trade deficit widened to $77.59 billion in May from a revised $54.57 billion gap in April, compared with a wider shortfall of $78.4 billion expected in a Bloomberg-compiled survey. Imports rose in the month, while exports fell.

* Redbook US same-store sales surged almost 12% from a year earlier in the week ended July 4 after a year-over-year increase of nearly 1% in the previous week.

* August West Texas Intermediate crude oil was up $3.44 to settle at $71.99 per barrel, while September Brent crude, the global benchmark, was last seen up $3.72 at $75.71.

* Cognizant (CTSH) shares were up about 5.5%, among the top gainers on the S&P 500, after the company said it has expanded its partnership with Alphabet's (GOOG, GOOGL) Google Cloud, pairing Cognizant Frontier Certified Engineers with the rollout of Gemini Enterprise within client environments.

* Intel's (INTC) shares were down nearly 10%, the second-worst performer on the S&P 500. Western Digital (WDC), Applied Materials (AMAT), Marvell Technology (MRVL), Micron Technology (MU), and Advanced Micro Devices (AMD) also saw deep declines. "Equities are rotating out of technology after Monday's rebound, as an Asian chip selloff revived (artificial intelligence)-valuation worries and pushed (South Korea's) KOSPI down 7.5%," Saxo Bank said in a report after a global tech sell-off on Tuesday followed the release of preliminary quarterly results by Samsung Electronics. Chinese firm DeepSeek is also developing its own AI chip that could allow it to rely less on US chipmaking giant Nvidia (NVDA) and Huawei, Reuters reported.

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