This article first appeared on GuruFocus.
U.S. stocks fell on Tuesday as investors kept selling technology shares, with the S&P 500 and Nasdaq Composite both under pressure while the Dow Jones Industrial Average held a slight gain.
The slide in Alphabet-heavy AI names followed a sharp drop in South Korea’s Kospi, which shook confidence in memory and chip stocks. Micron Technology (NASDAQ:MU), Sandisk (NASDAQ:SNDK), Teradyne (NASDAQ:TER) and Applied Materials (NASDAQ:AMAT) were among the weakest names as traders questioned whether heavy AI infrastructure spending can keep delivering strong returns.
The U.S. dollar also firmed, with the Dollar Index at its highest since mid-May, after the Federal Reserve left rates unchanged. Treasury yields edged lower, while June data showed the PMI Composite improving more than expected and the Richmond Fed Manufacturing Index easing more than forecast.
In commodities, crude oil futures and Brent prices drifted lower. Investors also watched U.S.-Iran talks, with both sides reportedly working toward a deal within 60 days.
