U.S. stocks close lower on chips sell-off


NEW YORK, June 23 (Xinhua) -- U.S. stocks ended lower on Tuesday, dragged down by sharp declines in memory chip and semiconductor stocks amid broader concerns over the AI sector.

The Dow Jones Industrial Average fell by 45.87 points, or 0.09 percent, to 51,666.84. The S&P 500 sank 107.33 points, or 1.44 percent, to 7,365.46. The Nasdaq Composite Index shed 579.56 points, or 2.21 percent, to 25,587.04.

Six of the 11 primary S&P 500 sectors ended in the green, with consumer staples and health leading the gainers by rising 1.78 percent and 1.37 percent, respectively. Meanwhile, technology and industrials led the laggards by dropping 3.66 percent and 2.03 percent, respectively.

Micron Technology plunged 13.18 percent one day ahead of widely awaited earnings results, SanDisk fell 13.64 percent, and Seagate Technology Holdings lost more than 5 percent. The shares of Intel, Advanced Micro Devices and Qualcomm all fell more than 5 percent on Tuesday.

Alphabet continued its recent weakness, slipping 0.77 percent after an about 5 percent drop on Monday linked to concerns over high-profile AI talent departures.

On the economic front, the U.S. composite purchasing managers' index (PMI) unexpectedly rose to 52.2 in June from 51.5 in May, beating the consensus forecast of 51.2, according to preliminary data released by S&P Global.

"Brighter news out of the Middle East has helped restore some confidence among U.S. businesses in June, though the overall rate of economic growth signalled by the flash PMI survey remains relatively sluggish compared to that seen earlier in the year in the lead up to the conflict," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

Oil prices continued to fall on Tuesday. West Texas Intermediate crude for August delivery decreased by 0.65 U.S. dollars, or 0.88 percent, to settle at 73.21 dollars per barrel on the New York Mercantile Exchange. Brent crude for August delivery lost 0.82 dollars, or 1.05 percent, to settle at 77.08 dollars per barrel on the London ICE Futures Exchange.

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