dpUS stocks fell on Tuesday after Samsung’s (016360.KS) quarterly results and reports that China’s DeepSeek is developing its own AI chip triggered renewed selling in the semiconductor sector.
The Dow Jones Industrial Average (^DJI) ticked down 0.2% on the heels of a record-setting day on Wall Street. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) fell 0.5% and 1.2%, respectively.
Volatility continued in the tech trade after Reuters reported that Chinese startup DeepSeek is developing its own artificial intelligence chip, competing with other chipmakers, including heavyweight Nvidia (NVDA).
The move lower in tech also followed Samsung’s record second quarter results. Surging demand for artificial intelligence helped lift Samsung’s Q2 operating profit 19-fold; however, concerns about its AI spending plans and future demand spooked investors.
The pullback in tech stocks weighed on markets on Tuesday following a rally the day before that lifted the Dow to a record high above 53,000.
Oil prices, meanwhile, spiked following reports of Iranian attacks on commercial ships in the Strait of Hormuz. Traffic through the critical waterway had been gradually picking up again amid a fragile US-Iran peace deal. Brent crude oil futures (BZ=F) rose above $75 per barrel while those on WTI crude oil (CL=F) climbed to $71 per barrel.
