Wall Street traded mixed on Tuesday as gains in the Dow Jones Industrial Average contrasted with losses in the S&P 500 and Nasdaq Composite, with investors assessing earnings from major US banks and a continued selloff in memory stocks.
The Dow Jones Industrial Average rose 368.77 points, or 0.71%, to 52,219.32 in early trading at 9:33 a.m. EDT. The S&P 500 slipped 4.54 points, or 0.06%, to 7,802.70, while the Nasdaq Composite fell 105.575 points, or 0.39%, to 27,140.327, according to real-time index quotes.
The mixed performance came as traders weighed corporate earnings from major banks against renewed pressure on technology stocks following a sharp overnight decline in South Korea, which added to weakness across the memory-chip sector.
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The artificial intelligence trade remained under pressure, with memory stocks continuing their decline amid concerns about intensifying competition from Chinese companies.
Micron shares fell around 5%, while SK hynix dropped 6% and Western Digital declined 7%, according to the market update. The losses highlighted growing investor sensitivity to competitive pressures in the semiconductor industry, even as AI-related spending continues to shape market sentiment.
Adding to the debate, Broadcom Chief Executive Officer Hock Tan cautioned against what he described as investors' extreme expectations surrounding artificial intelligence.
Tan compared some of the investment flows into the sector to casino gambling, underscoring concerns that investor enthusiasm may be running ahead of the underlying business opportunities.
His remarks come amid wider discussions over competition from open-weight AI models, the emergence of new frontier models and questions about how companies will finance the substantial investments required to develop AI infrastructure.
US equities entered Tuesday's session after a mixed performance on Monday. The Dow closed more than 195 points higher, while declines in memory stocks weighed on the Nasdaq Composite and S&P 500, leaving both indices in negative territory.
The divergence between the major indices continued into Tuesday, with the Dow outperforming even as technology-linked shares faced renewed selling pressure.
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In Europe, equities were broadly higher. The pan-European Stoxx 600 gained 0.7% in morning trading, while London's FTSE 100 led gains among major regional indices, rising 0.8%.
Investors are now balancing earnings-driven optimism with questions over the sustainability of AI-related valuations and the competitive outlook for semiconductor companies. The performance of memory stocks remains a key pressure point as markets assess the implications of Chinese competition and shifting expectations around the next phase of AI investment.
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