Dow gains as Nasdaq slides on chip selloff, SpaceX IPO concerns

• Semiconductor stocks reversed sharply: the Philadelphia Semiconductor Index fell as much as 8.6% intraday after initially rising 3%, with Micron dropping nearly 5% and giving back part of Monday's 10% gain.
• Oil prices fell roughly 3% to below $90 per barrel on diplomatic progress with Iran, though tensions reignited after reports of a downed U.S. helicopter in the Strait of Hormuz.
• SpaceX's record-breaking $1.75 trillion valuation IPO expected Friday may be drawing liquidity from tech stocks, while investors await May CPI data Wednesday for inflation signals tied to Middle East energy disruptions.

Market Summary: Dow Gains as Tech, Chips Decline on Multiple Headwinds

Market Performance:

U.S. equities showed divergent performance on Tuesday, with the Dow Jones Industrial Average rising 0.17% to 50,872.11, while the Nasdaq Composite fell 0.97% to 25,678.82 and the S&P 500 declined 0.26% to 7,386.65.

Semiconductor Sector Reversal:

Semiconductor stocks retreated sharply after Monday's brief rebound. The Philadelphia Semiconductor Index dropped as much as 8.6% intraday after opening 3% higher. Key casualties included:

• SOXX semiconductor ETF down over 3% following a 6% Monday rebound, after a 10% Friday decline
• Micron Technology (MU) fell nearly 5%, reversing part of Monday's 10% gain and extending losses to approximately 20% over recent sessions
• Broadcom declined despite announcing new AI data center partnerships

Concerns that the AI-driven chip rally had become overheated continued weighing on the sector, which remains up over 70% year-to-date.

Energy and Geopolitics:

WTI crude fell 3% below $90 per barrel after U.S. Energy Secretary Chris Wright reported increased Strait of Hormuz shipping traffic. President Trump indicated a U.S.-Iran deal could materialize within "two or three days," though he later announced Iran shot down a U.S. Apache helicopter, reigniting volatility. The Cboe Volatility Index hit its highest level since April 7.

Key Upcoming Events:

• May CPI data releases Wednesday, crucial for assessing Middle East conflict impact on inflation
• SpaceX IPO expected Friday, targeting $75 billion raise at $1.75 trillion valuation—the largest IPO in history
• OpenAI confidentially filed for IPO Monday

Analysts suggest SpaceX positioning may be contributing to semiconductor weakness as investors rebalance portfolios ahead of the landmark offering.