(Updates with index/price moves, macroeconomic data, and company/geopolitical news from the first paragraph.)
US equity indexes traded mixed as chipmakers pushed technology lower ahead of Microsoft (MSFT) and Meta Platforms' (META) quarterly results and a pause in strikes between Washington and Iran continued.
The Dow Jones Industrial Average rose 1% to 52,747.32, with the S&P 500 up 0.2% to 7,428.78 on Tuesday. The tech-heavy Nasdaq Composite fell 0.2% to 24,876.91. Energy and technology led the decliners while healthcare, consumer staples, and materials topped the gainers at the close.
Microsoft and Meta, part of the so-called Magnificent-7 stocks known for their sway over indexes, are expected to report earnings after the bell on Wednesday.
The VanEck Semiconductor ETF (SMH), with net assets of $77.2 billion, slid 3.5% on Tuesday. Among companies with a market capitalization of more than $200 billion, nine of the 10 worst performers were from the semiconductor and semiconductor equipment and materials industries, according to data compiled by Finviz. The steepest decliner in this category was SK Hynix (SKHY), down 9%.
Shares of Corning (GLW), a supplier of cover glass to Apple (AAPL), sank 12%, the second-worst performer on the S&P 500, after the company reported Q2 results and set guidance for the next quarter.
In geopolitical news, President Donald Trump said talks with Iran were continuing but again threatened to destroy Iranian bridges and power plants if no deal is made, CNN reported. Iran's foreign ministry spokesman, Esmaeil Baghaei, said Tehran was not negotiating with the US but added that "intermediaries may convey messages from the American side to us regarding ongoing developments in the region," Al Jazeera, a Middle East broadcaster, reported.
Iran's military said any ships belonging to a country or company that's using frozen Iranian assets will be blocked from transiting the Strait of Hormuz, CNN cited Iranian state media as saying.
Iran has rejected Trump's claim that ships damaged by Iran in the Gulf would be compensated from frozen Iranian funds. Iran Revolutionary Guards Corps spokesperson Ebrahim Zolfaghari warned that any vessel taking such money will be banned from transiting the Strait of Hormuz, Al Jazeera reported.
Front-month US West Texas Intermediate slumped 4.2% to $79.16 a barrel, and global benchmark North Sea Brent dropped 5% to $83.91 a barrel.
US Treasury yields fell, with the 10-year down 3.9 basis points to 4.6% and the two-year lower by 4.6 basis points to 4.28%.
In precious metal markets, gold futures fell 1.3% to $4,022.9, and silver futures declined 2.4% to $57.33.
In economic news, the Conference Board's measure of consumer confidence decreased to 90.8 in July from 92.2 in June, below the 92.4 expected in a Bloomberg-compiled survey.
The Case-Shiller National Home Price Index rose 0.6% in May, after a 0.8% increase in April, before seasonal adjustment. National home prices were up 1.1% year-over-year, up from 0.9% in April.
The Dallas Federal Reserve's monthly general business services index rose to 6.6 in July from 2.9 in June, above expectations for a 3.8 reading in a Bloomberg-compiled poll, indicating faster expansion.
The Richmond Fed's monthly manufacturing index rose to 5 in July from 4 in June, below expectations for 6 in a Bloomberg-compiled survey.
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