(Updates with index/price moves and company/political news)
US equity indexes declined as chipmakers helped push technology lower, while a missile strike on a Qatari vessel sent crude oil higher.
The Nasdaq Composite fell 0.6% to 25,972.1, the S&P 500 fell 0.2% to 7,519.8, and the Dow Jones Industrial Average retreated 0.4% to 52,869.1 after midday Tuesday. The technology sector led decliners, followed by industrials and materials. In addition to energy, the top gainer, other sectors in the lead included real estate, healthcare, and utilities.
Among stocks with market capitalization exceeding $200 billion each, 14 out of the bottom 20 names were technology firms, according to data compiled by Finviz. More than half of the decliners were semiconductor firms. The worst performer was Intel (INTC), down 9.2%, after Samsung Electronics' preliminary earnings disappointed investors.
Shares of Space Exploration Technologies (SPCX) slumped 5.3% after the company was added to the Nasdaq 100 on Tuesday.
In geopolitical news, Iran's Revolutionary Guard Corps fired missiles at vessels in the Strait of Hormuz, striking a liquefied natural gas carrier, according to media reports.
The front-month global benchmark North Sea Brent jumped 3% to $74.17 a barrel, and the US West Texas Intermediate advanced 2.8% to $70.48 a barrel.
"Oil prices and especially LNG rose after a Qatari LNG ship was struck by a projectile near the Omani coast as it exited the Strait of Hormuz, raising unease among shipowners while once again testing a US-Iran agreement intended to halt attacks and keep the narrow strait open," Saxo Bank said in a note.
France and Britain will outline plans for a multinational maritime mission in the Strait of Hormuz at talks between NATO and Gulf Arab foreign ministers on Tuesday, Reuters reported, adding that diplomats noted Iran's rejection of the initiative makes it unlikely to break the deadlock over the critical waterway in the Persian Gulf.
In economic news, consumer expectations for one-year US inflation growth jumped to 3.7% in June from 3.5% in the previous month, according to a survey released by the New York Federal Reserve Bank. The print is the highest since September 2023. Median inflation expectations rose to 3.3% from 3.1% three years ahead, and remained unchanged at 3.0% over five years.
The US international trade deficit widened to $77.59 billion in May from a revised $54.57 billion gap in April, compared with a wider shortfall of $78.4 billion expected in a Bloomberg-compiled survey. Imports rose in the month, while exports fell.
Consumer confidence for July rose from the prior month, with the RealClearMarkets' monthly index rising to 45.5 from 42.5 in June. A print above 50 suggests optimism, while a reading below 50 suggests pessimism.
Redbook US same-store sales surged almost 12% from a year earlier in the week ended July 4 after a year-over-year increase of nearly 1% in the previous week. "Significant nationwide temperature increases, combined with Independence Day promotions, led to increased demand for summer merchandise and brought more shoppers into air-conditioned stores," Redbook noted.
Most US Treasury yields rose. The two-year yield climbed 2.4 basis points to $4.15%, and the 10-year jumped 4.4 basis points to 4.52%.
Gold futures slipped 0.4% to $4,152.8, and silver futures dropped 1.7% to $61.26.
In company news, Amazon (AMZN) is seeking to raise at least $25 billion from a sale of US-dollar bonds, Bloomberg reported, citing people familiar with the matter.