Stock market today: Dow, S&P 500, Nasdaq plunge as tech rotation resumes, US-Iran tensions flare
US stocks lost ground on Tuesday as a market rotation out of chip stocks resumed and US-Iran tensions reignited.
The S&P 500 (^GSPC) fell over 2%, while the tech-heavy Nasdaq Composite (^IXIC) dropped by 3.5% after tech stocks lifted markets to a modest rebound on Monday. The Dow Jones Industrial Average (^DJI) declined by 1%, or around 500 points.
Chipmaker stocks, including Micron Technology (MU), Nvidia (NVDA), and Broadcom (AVGO), turned lower, 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.
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.
