Chip and AI hardware stocks led a broad Tuesday selloff that erased recent gains, leaving Dow Jones futures little changed early Wednesday. Target beat earnings estimates but still fell, while Treasury yields eased from multi-year highs and Trump delayed new tariffs on Canada.
Dow Jones futures were little changed early Wednesday. S&P 500 futures held similarly steady, while Nasdaq-100 futures fell 0.1%. The muted open follows a Tuesday session in which chip and AI hardware names dragged the broader market lower.
Chip and AI stocks lead the retreat
The Dow Jones Industrial Average dipped 0.2% in Tuesday's trading. The S&P 500 shed 0.7%. The Nasdaq composite retreated 1.3%, closing below its mid-July short-term highs.
Sandisk stock tumbled 9%, falling back below its 50-day line. Micron Technology gave up 7%. Credo Technology dived 13% to 245.97. Advanced Micro Devices and Bloom Energy, both testing 50-day-line resistance, sold off 4.3% and 10% respectively. Medical names fared better, with drug giants Eli Lilly and Johnson & Johnson posting solid sessions.
Target beats estimates but the stock still falls
Target's earnings solidly beat, with revenue, same-store sales and guidance also topping expectations, yet TGT stock still fell before the open. Lowe's fell modestly on mixed results and weak guidance. Keysight Technologies beat views and guided higher, rising modestly in premarket trade after tumbling 5.6% Tuesday. Toll Brothers slightly topped estimates late Tuesday, and its stock edged higher overnight despite closing below its 200-day line amid rising mortgage rates.
Yields ease as tariffs get delayed
The 10-year Treasury yield fell two basis points to 4.71%, backing off a 19-month high. The 30-year yield dipped 2.5 basis points to 5.28% after touching a fresh 19-year high of 5.33% in the morning. President Trump delayed new 50% tariffs on Canada for three days amid last-minute talks. Crude oil futures rose 1% to nearly $86 a barrel, continuing to trend higher.
Source: Investor's Business Daily
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