Nasdaq drops 1% as chip stocks tumble and oil spikes; Dow slips below 53,000: Live updates

The three major averages closed lower on Tuesday.

The Dow Jones Industrial Average declined 130.76 points, or 0.25%, to end at 52,925.15. The S&P 500 settled down 0.45% at 7,503.85, and the Nasdaq Composite dropped 1.16% to close at 25,818.69.

— Sean Conlon

The threat level to ships crossing the Strait of Hormuz has increased to “severe” after several Iranian attacks on tankers, a naval coalition led by the U.S. warned merchant vessels Tuesday.

The Joint Maritime Information Center cautioned mariners that “deliberate hostile action” by Iran is “likely under current conditions.” The center, headquartered in Bahrain, coordinates between allied navies and merchant ships in the Middle East.

Iran agreed to safe passage for commercial ships through Hormuz under the terms of an interim deal it signed with the U.S. on June 17. But Tehran has subsequently launched a series of attacks on ships using a U.S. Navy protected route through the strait.

“There is obviously a battle for control, because obviously the only leverage Iran has is control of Hormuz,” said Michelle Wiese Bockmann, a London-based senior maritime intelligence analyst at Windward. Read more.

— Spencer Kimball

Nvidia shares were around 1% higher in afternoon trading, reversing course from earlier losses Tuesday, as fellow chipmakers were under pressure.

The sell-off comes after Samsung Electronics’ upbeat quarterly results failed to please investors.

NVDA, 1-day

Here are some of the companies making headlines in midday trading:

• Cognizant Technology Solutions— The information technology company gained more than 6%. Cognizant said it willexpand its partnershipwith Google Cloud, aimed at accelerating enterprise adoption of Gemini AI.
• USA Rare Earth— The mining company lost more than 7% afterThe Wall Street Journalreported that a group of Democratic lawmakers is expanding its inquiry intothe government’s $1.6 billion investmentin USA Rare Earth. In particular, the lawmakers are seeking information from Cantor Fitzgerald regarding potential conflicts of interest tied to Commerce Secretary Howard Lutnick, the Journal reported.
• Adobe— The software giant popped more than 5% even after Bank of America reinstated coverage of Adobe as underperform and said it was “cheap, but fundamentally challenged.” The firm’s price target of $190 calls for a decline of nearly 13% from Monday’s close. “We are flagging risk to the growth profile as generative AI lowers barriers to content creation and increases competition from lower-cost and AI-native alternatives,” analyst Tal Liani wrote in a Tuesday report.

Read the full list here.

— Sarah Min

Financials are little-changed in midday trading Tuesday after pushing into record territory, with the State Street Financial Sector Fund hitting an all-time intraday high this morning, surpassing its prior high from early January. A positive close today would but the fund’s fourth in a row.

The move follows a setup CNBC flagged less than a month ago, when financials had the market’s deepest bench of stocks sitting just below breakout levels.

Insurance names are outperforming, with the SPDR S&P Insurance ETF up more than 1% on the day. KIE has gained more than 7% this year while the XLF is up about 3% and trails the broader market. KIE and the Invesco KBW Bank ETF also reached record highs today. Bank of America, US Bancorp and BNY Mellon are among the bank stocks hitting at least 52-week highs, while Chubb, Travelers, Aflac, MetLife and Allstate are doing the same in insurance.

The rally may be getting overstretched however: XLF’s relative strength index has climbed to 77, well into overbought territory and its highest level since July 2024. RSI is one tool traders use to gauge the speed and momentum of an asset’s recent price action.

Wells Fargo analyst Mike Mayo told CNBC on Monday that the rally has room to run, citing record capital markets activity, accelerating commercial loan growth, strong credit quality and deregulation. “This is one of the best environments I’ve seen in three decades,” he said.

— Nick Wells

The Stoxx 600 finished Tuesday’s session in negative territory, with the pan-European benchmark closing 0.65% lower.

Regional sectors were mixed. Technology stocks lost 3.6% on the day, as industrial goods companies fell 2.4%. Basic resources shed 2.28%. In contrast, household goods companies led gains, rising 1.5%, as healthcare stocks notched a 1.3% advance.

A majority of the continent’s major bourses were in the red at the closing bell. The German DAX closed 1.37% lower in Frankfurt, while in Milan the Italian FTSE MIB ended the day down 0.95%. In Paris, the French CAC 40 was 0.51% lower at the market close.

However, the U.K.’s FTSE 100 finished higher in London, up 0.13%.

— Hugh Leask

Correction: An earlier version misstated the session moves for the Stoxx 600, the tech sector of the Stoxx 600, and the German DAX.

Oil prices rose Tuesday after Iran attacked a tanker from Qatar near thestrategically vitalStrait of Hormuz.

The attack near the waterway, which typically handlesaround 20%of the world’s oil traffic, reaffirm the fragility of the U.S. and Iran’s interim peace agreement, as they negotiate a permanent end to their war.

Brent crudefutures, the international benchmark, were last seen trading 2.4% higher at $73.75 per barrel. U.S.West Texas Intermediatefutures advanced 2.3% to $70.13. Read more.

— Sam Meredith and Spencer Kimball

JPMorgan reiterated an Overweight rating for Apple, raising its price target to $345 from $325 to account for price elasticity of demand.

“We believe there are several drivers to lead the revenue and earnings outcomes to be much more favorable than currently feared by investors,”the bank’s analyst Samik Chatterjee wrote in a note.

Following the announcement of a 20% price hike on iPads and Macs, price elasticity of demand has been the biggest watchpoint for the company across its key hardware product lines.

Still, Chatterjee said, Apple’s earnings should hold up because historical data shows that demand for Macs and premium iPhones is less sensitive to price increases.

JPMorgan left its fiscal 2027 EPS estimate largely unchanged at $9.85.

— Deena Zaidi

RIVN, 1-day

The Dow Jones Industrial Average hit a new all-time high on Tuesday morning.

The blue-chip index added 187 points, or 0.3%, shortly after the opening bell. The S&P 500 declined 0.1%, while the Nasdaq Composite lost 0.5%.

— Sean Conlon

Amazon is looking to raise $25 billion in a bond sale, sources told CNBC’s David Faber. Shares of the internet giant gained 0.8% in the premarket.

Bloomberg News first reported the news.

Amazon, 1-day

The U.S. trade deficit accelerated sharply in May but was slightly lower than expected, the Commerce Department reported Tuesday.

The shortfall in goods and services totaled $77.6 billion for the month, up from a revised $54.6 billion in April as exports dropped 3.2% and imports rose 3.3%. Economists surveyed by Dow Jones had been looking for $78.08 billion.

— Jeff Cox

Rivian Automotivestock was down by more than 10% during premarket trading on Tuesday after the electric vehicle maker announced a public offering of 75 million shares of its Class A common stock.

The capital raise occurred during extended hours trading. Rivian shares rose 8.1% on Monday after increasing 19% last week. Read more.

RIVN, 1-day

DeepSeek is developing its own artificial intelligence chip, Reuters reported Tuesday, citing three people familiar with the matter.

According to the sources, the chip is being designed for inference — or when a trained model produces responses — as opposed to training new models.

The sources added, however, that the Chinese startup’s effort is still at an early stage. One of the sources said that the company’s effort started around a year ago.

— Sean Conlon

Check out the companies making headlines before the bell:

• Fiserv— The fintech stock rallied more than 5% afterThe Wall Street Journal reported, citing sources, that Fiserv has talked with major U.S. banks — including JPMorgan and Bank of America — to sell ​its payments infrastructure business that handles debit card transactions.
• Vertex Pharmaceuticals,Crinetics Pharmaceuticals— Vertex will buy Crinetics in a $10 billion deal to acquire treatments for rare hormonal diseases, the two companies say Monday. Vertex shares dipped nearly 1%. Crinetics shares roughly doubled.
• First Solar— The solar module manufacturer rose nearly 3% after Deutsche Bankupgraded the stock to buy from neutral. The bank cited three reasons why investors should buy the dip on shares, including a potential trade policy shift.

Read the full list here.

— Sarah Min

JPMorgan is expecting another strong quarter for Eli Lilly when the pharma giant reports in August. The firm raised its price target to $1,400 from $1,300, suggesting 17% upside from Monday’s close.

“[W]e see strong results based on the continued ramp of Mounjaro internationally and healthy growth in the US obesity market. For the qtr, we estimate total sales of $20.7bn (~$300mm above cons) and EPS of $8.85 (+$0.13),” analyst Chris Schott said in a note Tuesday.

Eli Lilly, which makes the blockbuster obesity drug Zepbound, remains Schott’s top pick. The stock has gained 12% so far this year.

— Michelle Fox

Biopharmaceutical company Crinetics saw its stock almost double in value in premarket trading Tuesday after biotech firm Vertex announced a $10 billion acquisition plan.

Vertex agreed to buy Crinetics for $85 per share, or roughly $8.8 billion in cash, with the transaction expected to be completed by the third quarter this year. Crinetics last rose nearly 99% in premarket trading, while Vertex shares dipped 0.2%.

Crinetics develops medicines for hormone-related disorders, including endocrine diseases. Vertex focuses on the discovery, development, and commercialization of medicines for serious diseases.

U.S. Treasury yields moved higher on Tuesday morning as investors awaited data on the U.S. trade deficit, FOMC meeting minutes and the start of the NATO Summit in Turkey.

At 5:35 a.m. ET, the benchmark10-year Treasuryyield rose over 2 basis points to 4.501%, and the30-year Treasurybond added 1 basis point to yield 5.01%. The 2-year Treasury note was up over 1 basis point to 4.141%.

Asia-Pacific markets closed lower Tuesday, with South Korea’s Kospi leading declines.

The Kospi closed 4.91% lower at 7,656.31. The Korea Exchange had earlier activated circuit breaker, pausing trading for 20 minutes, with the index falling more than 8% earlier in the day.

Japan’sNikkei 225dropped 2.12% to 68,256.96, while the Topix declined 0.97% to 4,062.26. Australia’s benchmark S&P/ASX 200 fell 0.31% to 8,803.90.

Hong KongHang Seng Indexdeclined 0.51% to 23,496.89 and mainland China’s CSI 300 fell 1.03% to 4,792.26.

— Justina Lee

Saab stock jumped after NATO Secretary General Mark Rutte confirmed that the defense alliance would buy up to 10 reconnaissance aircraft from the Swedish plane maker.

“This will ensure we keep NATO’s owned and operated surveillance and early warning capability strong and credible for decades to come,” Rutte said about Saab’s GlobalEye system, which will replace the alliance’s older Boeing fleet.

Saab said NATO will begin formal negotiations with Saab regarding the acquisition, but that it had not signed a contract or received an order related to the announcement. A deal value wasn’t communicated.

Shares of Saab rose 5.2% in Stockholm by mid-morning trading.

The announcement comes as world leaders meet in Ankara, Turkey, amid heavy pressure on governments to increase military budgets following last year’s landmark NATO agreement to spend 5% of GDP on defense and defense-related infrastructure by 2035.

— Elsa Ohlen

Tech stocks sold off in Europe in early trading on Tuesday, with the semiconductor pullback seen in the Asian session rippling into European markets.

At 8:20 a.m. in London (3:20 a.m. ET), Europe’s Stoxx 600 Tech index was 1.9% lower. French semiconductor materials maker Soitec‘s stock was last seen around 10% lower, while Be Semiconductor fell by 5%. Shares of Infineon, STMicro, ASML and ASMI were all more than 4% lower.

— Chloe Taylor

European shares were mixed on Tuesday, with no broad consensus movement seen across the continent’s indexes.

Twelve minutes into the trading session, the pan-European Stoxx 600 was marginally higher, with the index oscillating around the flatline in early dealmaking.

London’s FTSE 100 and the French CAC 40 were higher, while Germany’s DAX fell shortly after the open.

Shell hiked its integrated gas production guidance on Tuesday, but said output would still be markedly lower than it was in the first quarter due to the impact of the U.S.-Iran war.

The oil giant is scheduled to release its finalized second-quarter earnings in full on July 30.

Its outlook for second-quarter integrated gas production was raised to a range of 610,000 to 650,000 barrels of oil equivalent per day, from the guidance of 580,000 to 640,000 given to investors in May.

However, the upgraded range still marks a notable decline from the 909,000 barrels produced in the first quarter of the year. Shell said on Tuesday that the downturn “reflects the impact of the Middle East conflict on Qatari volumes.”

— Chloe Taylor

The South Korean exchange triggered circuit breaker for its main indexKospi, with trading halted for about 20 minutes after the index plunged.

Kospi fell more than 8%, while the small-cap Kosdaq lost over 3%. This is the sixth time that circuit breaker was activated this year, according to local media outlet Chosun.

The Kospi was pressured by index heavyweight Samsung which fell over 9% even as the tech giant forecast a record profit for the second quarter. SK Hynix also fell 10%, further pressuring the index.

— Justina Lee

Asian technology stocks sold off Tuesday, amid broad declines across regional markets.

South Korean tech stocks were one of the hardest hit. Kospi heavyweight Samsung fell 9% even as it forecast a record for the second quarter. Another index heavyweight SK Hynix dropped over 10%. Other tech-related names also came under pressure, with Samsung SDI down 3.88%, LG Display falling 3.40%.

In Japan, tech investor SoftBank Groupalso declined more than 4%.Advantestfell 2.76%, whileTokyo Electronwas down over 4%.Murata Manufacturing, which makes electronic components, fell 8.62%.Fanuc, manufacturer of industrial robotics,lost 5.44%.

In Taiwan, Apple supplierHon Hai Precision Industrydeclined 2.27%, contract manufacturerPegatronwas down 2.60% and iPhone camera lens maker Largan Precision lost more than 6%. Chip giantTaiwan Semiconductor Manufacturing Co, or TSMC, fell 0.81%.

—Justina Lee

Shares of Kuaishou Technology dropped 9.6% Tuesday, after its major shareholder Tencent sold $1.5 billion stake, according to a Bloomberg report.

Tencent sold 273 million shares in the short-video company at 43.25 Hong Kong dollars, according to the report, a 6% discount to Kuaishou’s close on Monday.

Tencent earlier this month backed a $2.8 billion financing round for Kuaishou’s Kling AI.

— Justina Lee

Sapporo Breweries will form a joint venture with Carlsberg, as part of its efforts to strengthen its presence in the beer industry across Southeast Asia and Hong Kong.

Sapporo and Carlsberg will increase the scope of their partnership to additional markets including Laos, Vietnam and Cambodia.

The Japanese brewery will invest about $643 million to acquire a 25% equity stake, with the investment expected to generate returns of more than a 12%. Carlsberg will contribute its businesses in the relevant markets.

“Through this alliance, Sapporo aims to expand sales volume of its “Sapporo Premium Beer” in the target markets to approximately 10 times the 2025 level by 2035,” the company said, adding that the region’s beer market is expected to increase at an annual rate of approximately 5%.

Sapporo’s shares last traded 0.34% higher at 1,902 yen.

— Justina Lee

Oil rose Tuesday in early Asia trade amid concerns over renewed tensions in the Middle East after an oil tanker was hit near the Strait of Hormuz, with Axios reporting that Iran had resumed attacks in the strait.

Futures for international crude benchmarkBrent for September delivery gained 0.63% to $72.45 a barrel. U.S.West Texas Intermediatefuturesfor August advanced 0.57% to $68.94 per barrel.

British maritime security agency UKMTO on Tuesday said that an “unknown projectile” struck and caused a fire on an oil tanker off the coast of Oman near the Strait of Hormuz on Monday, raising concerns over ongoing efforts to secure a lasting peace agreement between the U.S. and Iran.

“Vessels are advised to transit with caution,” the UKMTO said.

— Justina Lee

Shares of South Korea’s Hanwha Ocean plunged about 23% Tuesday, after the company lost its bid to build Canada’s next fleet of submarines.

Canadian Prime Minister Mark Carney announced Monday thatGermany’s Thyssenkrupp Marine Systems, or TKMS, would be the preferred supplier for the submarines.

That is expected to be a setback to Hanwha Ocean, as the contract was estimated to be up to $100 billion over three decades, according to The Korea Times.

— Justina Lee

Samsung Electronics on Tuesday saw its shares slide 7% even as it forecast record second-quarter operating profit of 89.4 trillion won ($58.4 billion), topping analyst estimates.

Operating profit from the same period a year earlier was 4.7 trillion won.

The tech giant expects revenue for the April-to-June period to rise to 171 trillion won, up from 133.9 trillion won in the previous quarter.

The results include deducted one-off expenses for employee bonus provisions following recent labor negotiations, according to analysts.

Earlier this year, Samsung agreed to scrap its 1,000% base salary bonus cap and earmark 10.5% of its operating profit for bonuses, capitulating to a weeks-long labor union protest that demanded a fair share of the company’s earnings.

— Jenny Lee

Asia-Pacific markets traded broadly lower early Tuesday, breaking ranks with Wall Street that saw the Dow hit a new high overnight.

South Korea’s Kospi dropped 1.71% at open, while the small-cap Kosdaq declined 0.72%.

Japan’sNikkei 225was marginally lower, though the Topix added 0.27%.

Australia’s benchmark S&P/ASX 200 fell 0.12%.

Futures for Hong Kong’sHang Seng index last traded at 23,571, lower than the index’s close of 23,616.32.

— Justina Lee

Asia-Pacific markets were set to open mixed Tuesday, after Wall Street rallied overnight with the Dow jumping 150 points for its first close above 53,000.

Japan’sNikkei 225was poised to gain, with the Chicago futures contract at 70,350 and its Osaka counterpart last trading at 70,300, compared with the index’s previous close of 69,737.69.

Hong KongHang Seng indexfutures were last at 23,571, lower than the index’s close of 23,616.32.

Futures for Australia’s S&P/ASX 200 last traded at 8,813, while theindex closed at 8,831.

Tensions in the Middle East have eased, but friction between NATO members is now in focus as PresidentDonald Trump piles on pressure over defense spending.

The U.S. ambassador to the alliance told CNBC on Monday that “the target is that Europe takes over the conventional defense of the European continent.”

“We’re not going away, we’re just doing less,” Ambassador Matthew Whitaker said about U.S. involvement in European security and defense, ahead of this week’sNATO summit in Ankara, Turkey.

— Justina Lee

SpaceX shares slid around 1% in extended trading on Monday ahead of the stock’s entrance into the Nasdaq-100.

The rocket company will join the concentrated index on Tuesday. It’s expected to catalyze a spate of passive buying from mutual and exchange-traded funds that track the index.

CNBC Pro subscribers can click here to read more about what it means for investors.

— Alex Harring

Walmart shares ticked lower after the bell on Monday after President Donald Trump claimed that the retailer would cut price tags.

“I have just been informed that one of the biggest, best, and smartest Retailers in America, Walmart, will be lowering prices, by a lot, at my Administration’s request to celebrate our great Country’s 250th birthday,” Trump wrote on Truth Social in an afternoon post.

Trump said that Walmart would specifically lower ground beef prices “by almost 15%.” Other products would also see price decreases, he said.

“Walmart is stepping up in a big and bold way, and other Retailers should follow the lead of these absolute Patriots,” Trump wrote.

Walmart shares slipped about 1% in Monday’s session, marking its seventh losing day of the last eight. Shares are slightly below flat on the year.

— Alex Harring

Shares of Vertex Pharmaceuticals dropped more than 2% following news that the company will be buying Crinetics.

Vertex said it has entered an agreement to acquire Crinetics for $85 per share in cash, valuing the deal at about $10 billion.

The acquisition is expected to close in the third quarter of 2026.

Shares of Crinetics nearly doubled in extended trading.

— Darla Mercado

Futures tied to the Dow, S&P 500 and Nadaq-100 all traded near flat shortly after 6 p.m. ET.

— Alex Harring