Stock market today: Dow rises, S&P 500, Nasdaq fall as tech rotation trade resumes, US-Iran tensions flare
US stocks closed mixed but recovered from deeper losses on Tuesday as a market rotation out of chip stocks resumed amid renewed US-Iran tensions.
The S&P 500 (^GSPC) fell 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) dropped by about 1%, paring back losses of as much as 3.5% in afternoon trading. The Dow Jones Industrial Average (^DJI) rose roughly 0.2%.
Chipmaker stocks, including Micron Technology (MU), Nvidia (NVDA), and Broadcom (AVGO), fell, reversing earlier gains. The action highlighted the ongoing tug-of-war between AI optimism and growing concerns that persistent inflation could prompt the Federal Reserve to raise rates this year. Investors will be searching for policy clues following Wednesday’s crucial monthly Consumer Price Index reading.
Meanwhile, one of the primary drivers of rising prices — the war with Iran — again flared. Hours after President Trump said peace talks were on track, he announced that the US would respond to an Iranian attack on a US military helicopter.
Wall Street is gearing up for a major event on Friday, when SpaceX (SPCX) could make its market debut and set a record for the largest public offering in history.
Also, OpenAI said after Monday’s market close that it had confidentially filed paperwork for an initial public offering, a week after rival Anthropic took the same step. Both AI companies are now positioned to trade on Wall Street as soon as this fall.
