New York stocks ended mixed as a selloff concentrated in semiconductor-related shares, even as international oil prices fell for the first time in six sessions on easing geopolitical tensions in the Middle East.
On the 25th, the Dow Jones Industrial Average closed at 51,947.25, up 235.60 points, or 0.46%, from the previous session. The Standard & Poor's 500 index rose 3.68 points, or 0.05%, to 7,411.98, while the Nasdaq Composite fell 161.87 points, or 0.64%, to 24,975.82.
Among the top technology stocks by market capitalization, Apple rose 3.53%, Microsoft gained 0.03%, and Google parent Alphabet advanced 0.65%. In contrast, Amazon (-0.66%), SpaceX (-2.68%), Facebook parent Meta (-1.80%), and Tesla (-2.08%) all declined.
Semiconductor-related stocks in particular showed weakness, weighing on the indexes' gains. This was because market doubts remained over the continued expansion of investment in artificial intelligence (AI) infrastructure. Nvidia fell 0.92%, while other major chip stocks all declined, including Broadcom (-2.69%), SK hynix (-8.81%), Micron (-6.99%), AMD (-3.29%), and SanDisk (-10.79%). The Philadelphia Semiconductor Index also fell 4.25%. Intel had reported second-quarter earnings that beat market expectations after the previous session's close, but it fell 7.89% on doubts about securing customers for its foundry (contract chip manufacturing) business, its future growth engine.
The Donald Trump administration's move to impose "forced labor tariffs" on 60 economies based on Section 301 of the Trade Act also served to limit the market's gains. The previous day, the Office of the U.S. Trade Representative (USTR) said it had finalized tariffs of 10 to 12.5% on 60 economies, including South Korea, for failing to block trade in products made with forced labor.
Meanwhile, the fact that Middle East instability did not spread further reassured the New York market. Reuters reported on the 25th that Pakistan, under China's lead, is moving to revive negotiations between the United States and Iran. A Pakistani government official told Reuters, "China is dissatisfied, judging that Iran's attacks on Gulf states and the closure of the Strait of Hormuz damage its interests." Yemen's pro-Iran Houthi rebels also drew a line against the possibility of escalation, indicating they would not completely block ship traffic through the Bab-el-Mandeb Strait at the entrance to the Red Sea. However, with the United States having struck Iran for a 14th consecutive day and Iran having hit U.S. military bases in Kuwait and elsewhere, uncertainty over the Middle East situation has not been fully dispelled.
On expectations of resumed negotiations backed by China, September-delivery Brent crude futures on the ICE Futures exchange in London, England, settled at $96.78 per barrel, down 3.88% from the previous session. September-delivery U.S. West Texas Intermediate (WTI) futures on the New York Mercantile Exchange also fell 3.12% to $89.31 per barrel. Both Brent and WTI turned lower for the first time in six sessions.
