Geopolitical tensions and rising crude prices weighed on US markets Tuesday, though strength in the semiconductor sector helped mitigate losses as the Dow fell 1.18%.
Amgen shares dropped more than 10% as part of a broader sell-off in the biotechnology sector. This decline was triggered by negative sentiment following a failed late-stage clinical trial for a muscle-wasting disease treatment by Novartis, which cast doubt on the sector's near-term prospects.
Amgen fell due to a sector-wide sell-off in biotech stocks following a failed clinical trial by Novartis.
Advanced Micro Devices rose over 5% as part of a strong rally in chipmakers and AI-infrastructure stocks. Despite the broader market's weakness, the semiconductor sector showed resilience, with the iShares Semiconductor ETF (SOXX) reaching a 2.5-week high.
AMD benefited from a strong rotation into chipmakers and AI-infrastructure stocks, which outperformed the broader market.
Intel surged more than 8% as investors flocked to semiconductor and AI-related stocks. The company's performance was a standout in the Nasdaq 100, reflecting the market's continued appetite for chip manufacturers despite broader economic concerns.
Intel's gains were driven by a positive trend in the semiconductor sector and strong investor interest in AI-infrastructure companies.
US equity markets finished lower on Tuesday, led by a 1.18% decline in the Dow Jones Industrial Average as geopolitical instability in the Middle East fueled inflation concerns. Crude oil prices surged over 1% to a three-month high following attacks on Saudi oil facilities, while software stocks faced broad selling pressure. Despite the market weakness, chipmakers and AI-infrastructure stocks provided a buffer, with Intel and AMD posting significant gains.
The Dow fell 1.18% primarily due to rising geopolitical tensions in the Middle East, which pushed crude oil prices higher and increased investor concerns regarding persistent inflation and potential interest rate hikes.