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Update: Equity Markets Mostly Fall Intraday Amid Tech Sell-Off

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Update: Equity Markets Mostly Fall Intraday Amid Tech Sell-Off

(Updates with latest market prices and developments.)

US benchmark equity indexes were mostly lower intraday amid a sell-off in the technology sector led by big names such as Nvidia (NVDA) and Micron Technology (MU).

The tech-heavy Nasdaq Composite was down 1.5% at 25,767.5 after midday Tuesday, while the S&P 500 fell 1% to 7,400.6. The Dow Jones Industrial Average edged up 0.3% to 51,845.6. Among sectors, tech saw the steepest decline, down 2.8%, while consumer staples paced the gainers.

Within tech, semiconductor stocks were the notable laggards, with Nvidia shares down 3.1%, the second-worst performer on the Dow. Sandisk (SNDK) slid 13%, the biggest drop on the S&P 500. On Semiconductor (ON) and Qualcomm (QCOM) were also sharply lower.

Micron followed Sandisk on the S&P 500, down nearly 12%.

Tech stocks may face spillover impact from the recent sharp sell-off in South Korea, though the decline appears to be a "pullback/breather" in a market that nearly doubled this year, Wedbush Securities said.

"With Micron set to report earnings this (Wednesday), there is some added nervousness on the important memory chip trade and, along with technical triggers, is adding to some nervousness among tech investors," the brokerage said in a note.

In company news, IBM (IBM) shares were up 4.8% intraday Tuesday, the best performer on the Dow. The computer maker joined the OpenAI Daybreak Cyber Partner Program and launched a new application-security service that uses OpenAI's models to help enterprises identify and validate software vulnerabilities, it said late Monday.

Korn Ferry (KFY) on Tuesday reported higher fiscal fourth-quarter results, although the consulting firm issued an outlook calling for lower earnings in the current quarter. The company's shares were up 5.4%.

Parcel delivery giant FedEx (FDX) is scheduled to report results after the closing bell Tuesday.

West Texas Intermediate crude oil slipped 0.8% to $73.27 a barrel intraday, while Brent lost 1% to $77.15.

US President Donald Trump said 19 million barrels of oil flowed out of the Strait of Hormuz yesterday, marking an all-time record. "Oil prices are tumbling down," Trump said Tuesday.

In a separate social media post, Trump said he has agreed to allow the strait to remain open, with no further naval blockade. "However, all ships are remaining in place should it be necessary to reinstitute the Blockade, which seems, at this point, highly unlikely," the president said.

US Secretary of State Marco Rubio arrived in the Gulf region, aiming to sell the Iran deal to three countries -- the United Arab Emirates, Bahrain and Kuwait -- that are likely to be among its biggest skeptics, CNN reported.

US Treasury yields were lower intraday, with the two-year rate down 4.3 basis points at 4.20% and the 10-year rate falling 2.8 basis points to 4.47%.

In economic news, US private-sector output rose in June at the fastest pace in five months amid a solid expansion in the manufacturing sector, S&P Global (SPGI) said.

"Brighter news out of the Middle East has helped restore some confidence among US businesses in June, though the overall rate of economic growth signaled by the flash PMI survey remains relatively sluggish compared to that seen earlier in the year in the lead up to the conflict," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

Manufacturing activity in the US Mid-Atlantic region fell more than projected in June, with shipments, new orders and employment all weakening sequentially, data from the Federal Reserve Bank of Richmond showed.

Gold was down 1.3% at $4,147.80 per troy ounce, while silver slumped 5.4% to $62.02 per ounce.

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