The Dow Jones Industrial Average closed slightly lower on Tuesday after a choppy session. The Nasdaq composite led the downside, incurring losses of over 1%.
Semiconductor firm Micron warned of weakening demand, dropping the PHLX semiconductor index through psychological support at 3,000. It ended the session down more than 4.50%, generating losses in other tech groups as well.
Dow Jones Closes Lower, Nasdaq Leads Downside
Stocks sold off at the opening bell and closed lower on Tuesday as the major indexes paused after several weeks of strong gains. Those instruments remain comfortably above their 50-day moving averages, an important area of support, but below their overhanging 200-day lines.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32776.25 | -56.29 | -0.17 |
| S&P 500 | (0S&P5) | 4122.65 | -17.41 | -0.42 |
| Nasdaq | (0NDQC ) | 12493.93 | -150.53 | -1.19 |
| Russell 2000 | 190.23 | -2.59 | -1.34 | |
| IBD 50 | 28.74 | -0.59 | -2.01 | |
Last Update: 4:22 PM ET 8/9/2022 |
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The Dow was down 0.2% at the close while the S&P 500 lost 0.4%. Small caps posted the highest intraday losses, dropping the Russell 2000 1.3%. The Nasdaq was down 1.2%, also leading the downside by a large margin.
Tech stocks closed lower as the Technology Select Sector SPDR fell over 1% in reaction to weakness in chip stocks. However, of the 11 S&P 500 sectors, the consumer discretionary index posted the biggest losses.
Energy stocks gained ground for the third straight day, although crude oil traded near the flatline, ending the U.S. session near $90.65 per barrel. It failed to hold session highs of $92.63 per barrel, printed in the premarket. Meanwhile, the yield on the 10-year Treasury note rose 3 basis points to 2.80%.
Volume traded a little higher on the Nasdaq and a little lower on the NYSE vs. the same time on Monday.
Micron Falls On Demand Warning, Chips Slide
Chip leader Micron warned of weakening demand, advising that sales in the current quarter could be at the low end or below its target range.
The stock gapped down below its 50-day moving average and lost 3.7% on the news, pulling down other semiconductor stocks. Applied Materials lost 8% and tested support at its 50-day line. Lam Research Corporation lost 8% as well. Dow Jones Industrial Average component Intel sold off 2.4%.
Outside the Dow Jones: Coinbase Reports Earnings
Coinbase Global posted a Q2 loss of $4.98 per share, much worse than expectations for a $1.23 per-share loss. In addition, $808.33 million in revenue missed consensus for $868.39 million.
The stock started the regular session in the upper 90s and was trading around 83.00 in the post-market.
This volatile stock sported big gains last week, rising 47% when it unveiled a new partnership with BlackRock, the world's largest asset management firm. The deal allows BlackRock's institutional investors to buy bitcoin via the cryptocurrency platform.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
