SpaceX's First Day on the Nasdaq 100 Did Not Go Well

The roller-coaster ride for AI stocks snapped lower again and weighed on Wall Street on Tuesday.

• The S&P 500 fell 33.58 points, or 0.4%, to 7,504.85, even though the majority of stocks within the index rose.
• The Dow Jones Industrial Average dipped 130.76 points, or 0.2%, to 52,925.15.
• The Nasdaq composite fell 302.47 points, or 1.2%, to 25,818.69.

The weakness began in Asia, where Samsung Electronics tumbled 6.9% in Seoul despite offering what analysts called a strong forecast for upcoming results, the AP reports. Samsung Electronics said it expects to say its operating profit surged roughly 1,800% from a year earlier. Analysts called the numbers surprisingly good, but they still weren't enough for investors after its stock came into the day having more than doubled in the year so far.

On Wall Street, AI stocks have been under similar pressure in recent weeks on worries that their prices shot too high and that AI may not produce enough productivity and profits to make all the investments in chips and data centers worth it. Drops of 6.5% for Advanced Micro Devices, 9.7% for Intel, and 4.7% for Micron Technology were the heaviest weights on the market. SpaceX, which owns the xAI business, fell 6.8% in its first trading after getting included in the Nasdaq 100 index. It closed at $149.47, down from a peak of just over $200 days after its June IPO.

Outside of tech, Vertex Pharmaceuticals slipped 1.4% after saying it agreed to buy Crinetics Pharmaceuticals for $85 per share in cash. Crinetics, which develops therapeutics for endocrine diseases, soared 98.7%. Rivian Automotive dropped 18.1% after the electric vehicle company said it's selling 75 million shares of its stock, a move that dilutes the ownership stakes of earlier shareholders.

Stocks also felt pressure from a rise in oil prices after the British military said three tankers were struck by projectiles in the Strait of Hormuz. The US later revoked a license that had authorized the sale of Iranian oil as part an interim deal to end the fighting between the US and Iran. That hurt hopes that the Strait of Hormuz may fully reopen to oil tankers carrying crude to customers worldwide from the Persian Gulf. Brent crude, the international standard, rose 3% to settle at $74.16 per barrel.Higher oil prices put upward pressure on inflation, and Treasury yields climbed in the bond market. The yield on the 10-year Treasury rose to 4.54% from 4.48% late Monday and from just 3.97% before the war with Iran began.