Chips slide, SpaceX IPO jitters send Nasdaq lower

Technology and semiconductor stocks pulled the market lower on Tuesday in New York, with investors also responding to renewed tensions in the Middle East and an approaching SpaceX public offering.

The Nasdaq Composite closed at 25,678.82, down 0.97%. The S&P 500 fell 0.26% to 7,386.65. The Dow Jones Industrial Average bucked the decline, rising 86.10 points to 50,872.11, up 0.17%.

Semiconductor shares were among the weakest performers. The iShares Semiconductor ETF dropped more than 3% after a 6% rebound on Monday; the fund had plunged about 10% on Friday, its largest one-day fall in six years. The Philadelphia Semiconductor Index swung from an early gain of about 3% to an intraday loss as large as 8.6%.

Individual chipmakers saw sharp moves. Micron Technology fell nearly 5%, reversing part of a 10% bounce from the prior session. Broadcom eased more than 2% after management kept its long-term artificial intelligence revenue outlook unchanged despite strong quarterly results. The S&P 500 technology sector fell almost 4% before trimming losses later in the session.

Energy market developments and geopolitical comments affected broader sentiment. U.S. Energy Secretary Chris Wright described shipping traffic through the Strait of Hormuz as increasing significantly, and West Texas Intermediate crude futures dropped about 3% to below $90 a barrel. President Donald Trump suggested a deal between the United States and Iran could be reached within two or three days and that the strait could reopen immediately; he later stated that Iran had shot down a U.S. Apache helicopter patrolling the waterway and pledged a response. The Cboe Volatility Index rose to its highest level since April 7.

Sector performance varied. Lower oil prices weighed on energy stocks, while materials, consumer discretionary and real estate stocks outperformed. Real estate stocks received support from stronger-than-expected existing home sales data.

Market participants are focused on several upcoming events. U.S. consumer price index data for May is due Wednesday and may show whether higher energy costs tied to the regional conflict are feeding into inflation. SpaceX is expected to list on Friday, seeking to raise about $75 billion at a valuation near $1.75 trillion, which would make it the largest initial public offering on record. Some strategists say investors have been locking in gains in semiconductor shares and repositioning portfolios ahead of the listing. Separately, OpenAI disclosed that it has confidentially filed for an initial public offering.

Despite the recent volatility and swings in chip names, the semiconductor index remains more than 70% higher year to date. Investors said they will be watching inflation data and the SpaceX offering for signals on liquidity and risk appetite as markets digest geopolitical developments and sector-specific profit-taking.