Wall Street indices were split at open on Tuesday, as S&P 500 and Nasdaq edged lower after semiconductors took a hit and Dow Jones remained unaffected in the green due to low tech exposure.
S&P 500 opened 0.10% lower at 7,526.74, Nasdaq was down 0.5% to 25,967.17, whereas Dow Jones Industrial Average geared up for a new record after opening 0.33% higher at 53,220.77.
Major semiconductor players like Micron Technology Inc., Advanced Micro Devices Inc., and Intel Corp sank up to 11% after worries surrounding Samsung's AI capex spooked investors.
Micron and AMD fell as low as 9% to $891.66 and $504.10, while Sadisk plummeted 14% to $1,485.02. Nvidia fell over 2% to trade at $191.14 and Intel plunged 11% to a low of $108.36.
ALSO READ: Intel, Nvidia, AMD, Micron, Sandisk Plunge Up To 14% On DeepSeek's In-House Chip Threat
Despite Samsung estimating a 1800% profit jump going ahead, investors scepticism around whether that growth would be able to justify sky-high capex on data centres has dragged other AI-linked giants.
Growing competition in south-east Asia is also threatening US-based chipmakers. Reports have emerged indicating that Chinese startup DeepSeek is manufacturing its own AI chips.
Separately, Elon Musk's SpaceX, which was included in the Nasdaq 100 index today, failed to excite traders and fell 4% to $154.32 within minutes of the opening bell.
Oil prices rose again after renewed tensions in West Asia with Brent Crude up 2.35% at $73.68 per barrel and the West Texas Intermediate up 2.14% to $70.08 per barrel.
On the currencies front, Dollar Spot Index was little changed along with the euro, which was stable at $1.1439 and British Pound at $1.3381. On the other hand, Japanese yen rose 0.1% to 161.87 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 0.8% to $63,289.52.
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