S&P 500 Falls 0.4 Percent as AI Stocks Drop Worldwide

Major U.S. stock indexes declined Tuesday after shares of companies tied to artificial intelligence fell sharply. The S&P 500 dropped 0.4 percent to 7,503.85 even though most stocks in the index rose. The Nasdaq composite fell 1.2 percent and the Dow Jones industrial average slipped 130.76 points, or 0.2 percent, to 52,925.15.

The weakness began in Asia, where Samsung Electronics shares tumbled 6.9 percent in Seoul after the company reported strong second-quarter results. Samsung said it expects operating profit to rise roughly 1,800 percent from a year earlier. The gains were not enough to satisfy investors who had already driven the stock more than double higher this year.

On Wall Street, several AI-related stocks posted large losses. Advanced Micro Devices fell 6.5 percent, Intel dropped 9.7 percent and Micron Technology declined 4.7 percent. SpaceX shares fell 6.8 percent in their first trading session after the company was added to the Nasdaq 100 index.

Oil prices climbed after the British military reported that three tankers were struck by projectiles in the Strait of Hormuz. The United States later revoked a license that had allowed the sale of Iranian oil under an interim deal. Brent crude rose 3 percent to settle at $74.16 per barrel.

Higher oil prices lifted the 10-year Treasury yield to 4.54 percent from 4.48 percent the previous day. The yield stood at 3.97 percent before the conflict with Iran began. Markets abroad also fell, with South Korea’s Kospi index dropping 4.9 percent and Japan’s Nikkei 225 declining 2.1 percent.