Key Takeaways:
- Dow set a new all-time high intraday before closing 0.3% lower
- Chip stocks led declines after Samsung slumped 7% in Seoul trading
- Energy sector gained 3% as oil surged on revoked Iran export license
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Dow sets third straight record high before closing 0.3% lower
The Dow Jones Industrial Average set a new all-time high for the third consecutive session before reversing to close 0.3% lower at 52,834.
"The intraday record shows the market's underlying strength, but profit-taking in high-flying chip names pulled the broader market back," said Sarah Lin, equity market analyst at Edgen.
The S&P 500 fell 0.5% and the Nasdaq Composite dropped 1.2%. The Dow had risen as much as 0.5% in morning trading, crossing the 53,100 level for the first time, before giving up gains. Leading the Dow's advance were 3M, Amgen, Procter & Gamble, Google parent Alphabet, and Apple.
The chip selloff was the day's dominant drag. Samsung Electronics dropped 7% in Seoul trading despite reporting second-quarter revenue of roughly 171 trillion Korean won ($112.7 billion) and operating profit of about 89.4 trillion won ($59 billion), both above consensus. The weakness spilled into US-listed peers: Intel fell 6.5%, Advanced Micro Devices dropped more than 3%, and Marvell Technology declined 6.5%. The VanEck Semiconductor ETF lost 3%.
Energy was the S&P 500's best-performing sector, gaining more than 3%, as oil prices surged after the Treasury Department revoked a waiver allowing Iran to sell its crude. West Texas Intermediate futures jumped 4.9% to $71.90 a barrel, while Brent crude rose 5.1% to $75.70. Occidental Petroleum, Devon Energy, and APA each gained between 5% and 6%.
The 10-year Treasury yield rose about seven basis points to 4.54%, while the US Dollar Index edged up 0.2% to 101.08. Gold futures fell 1.2% to $4,115 an ounce. Bitcoin traded near $63,700, little changed over the past 24 hours.
In other single-stock moves, SpaceX shares fell about 7% on their first day as a member of the Nasdaq 100 index. Caterpillar dropped nearly 5% after announcing the acquisition of Skycatch, a mining data analytics firm, though the stock remains up more than 60% year to date. Walmart rose more than 1% after announcing thousands of price cuts across categories. Rivian sank 11% after the electric-vehicle maker announced a public offering of about 75 million shares.
The reversal from intraday highs leaves the Dow up about 14% year to date, while the S&P 500 has gained roughly 18%. Investors now turn to the start of second-quarter earnings season next week, with big banks including JPMorgan Chase and Wells Fargo scheduled to report.
This article is for informational purposes only and does not constitute investment advice.
