Stock Market Today: Chip Stocks Slide, Oil Climbs After Iran Strikes in Hormuz

TLDR

• Samsung’s Q2 operating profit jumped 19-fold, driven by AI demand, but concerns about spending plans triggered a chip stock sell-off
• The Nasdaq fell 1.4%, the S&P 500 dropped 0.6%, and the Dow slipped 0.1% on Tuesday
• The pullback came one day after the Dow hit a record high above 53,000
• Oil prices rose after Iran attacked commercial ships in the Strait of Hormuz, pushing Brent crude above $73 a barrel
• Wolfe Research raised its S&P 500 earnings estimates and set a year-end fair value target of 8,000

Samsung reported a massive jump in quarterly profit on Tuesday, but the results ended up hurting the broader chip sector rather than helping it.

The company’s second-quarter operating profit rose 19 times compared to the same period last year. AI demand was the main driver.

Despite the strong numbers, investors were rattled. Concerns about Samsung’s AI spending plans and questions about future demand sent its stock lower. That pressure spread across the semiconductor sector.

Nasdaq Takes the Biggest Hit

The Nasdaq fell 1.4% on Tuesday, making it the worst-performing major index of the day. The S&P 500 dropped 0.6% and the Dow Jones Industrial Average lost around 0.1%.

The declines came just one day after the Dow set a record high, closing above 53,000 for the first time.

The chip sector had been rallying in recent sessions. Tuesday’s move reversed much of that momentum in a single trading day.

Tech stocks led the losses. The reversal was sharp and broad, hitting multiple names tied to artificial intelligence and semiconductors.

Oil Rises on Middle East Tensions

While stocks fell, oil prices moved higher. Iran fired on commercial vessels in the Strait of Hormuz, one of the world’s most important shipping routes.

Brent crude futures climbed above $73 a barrel. West Texas Intermediate crude rose to $70 a barrel.

Traffic through the strait had been picking back up in recent weeks. Tuesday’s incident raised fresh concerns about the stability of the US-Iran peace agreement.

Markets have been watching that deal closely. Any sign of it breaking down could disrupt oil supply and push prices higher.

Treasury yields also rose as tensions escalated. The US dollar strengthened alongside the yield move.

Earnings Season Ahead

Despite the selloff, some analysts remain upbeat about the broader market outlook.

Wolfe Research strategist Chris Senyek raised his S&P 500 operating earnings estimates for both 2026 and 2027. He set a year-end fair value for the index at 8,000.

Senyek pointed to strong earnings performance so far in 2026. He said companies should be able to meet high expectations heading into the second-quarter reporting season.

The S&P 500 has traded in a tight range since mid-May. Senyek believes the upcoming earnings season could be the catalyst needed to push the index higher.

Caterpillar shares also fell on Tuesday following news of a new mining deal. The stock added to the day’s broader losses.

As of midday Tuesday, the Dow stood at 52,866. The S&P 500 was at 7,489 and the Nasdaq had fallen to 25,745.

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