Dow rises 160 points as chip selloff drags Nasdaq

U.S. markets opened mixed, with the Dow Jones Industrial Average up about 160 points (0.3%), the Nasdaq Composite down roughly 0.7% and the S&P 500 slipping about 0.25% as semiconductor stocks weakened ahead of the second-quarter earnings season.

Large-cap industrial and software shares supported the Dow while hardware and semiconductor names weighed on the Nasdaq.

Micron Technology led losses among chipmakers, falling about 6.9%. KLA, Marvell Technology, Broadcom and Advanced Micro Devices also traded lower. Nvidia dropped more than 1.4% after reports that a Chinese startup is developing its own artificial intelligence chip.

Memory names were hit hardest. Western Digital slid over 6% and SanDisk fell about 8% as some investors took profits following large gains across the sector over the past year.

Microsoft, Salesforce and IBM were among the biggest contributors to the Dow’s advance, while technology hardware stocks dragged on the broader indexes.

Outside semiconductors, Fiserv gained after discussions about selling its debit card payments infrastructure business to major U.S. banks were reported. Rivian fell more than 10% after announcing a 75 million-share offering while it forecast second-quarter revenue above analysts’ estimates.

Selling in chips began in Asia. South Korea’s Kospi fell nearly 5%, with Samsung Electronics down almost 7% despite reporting a 19-fold increase in second-quarter operating profit. SK Hynix declined sharply and is scheduled to begin trading on the Nasdaq later this week.

European markets also moved lower, with the STOXX 600 edging down before U.S. trading opened.

Investors are focused on second-quarter corporate results to assess companies tied to artificial intelligence. Market participants are also awaiting minutes from the Federal Reserve’s most recent policy meeting, the first under Chair Kevin Warsh, and pricing shows traders expect at least one 25-basis-point rate increase before year-end.

Oil prices rose after reports of attacks on vessels near the Strait of Hormuz. SpaceX was set to join the Nasdaq-100 on Tuesday, with its shares trading modestly higher after the industry’s quiet period expired.