US Stocks Mixed: Dow Rises 537 Points, Nasdaq and Chip Stocks Fall

U.S. stock markets experienced a mixed trading session on Tuesday, driven by a combination of robust corporate earnings, falling oil prices, and a sector rotation away from semiconductors. The Dow Jones Industrial Average closed up 537.24 points, or 1.03%, at 52,747.32. The S&P 500 index also saw a modest gain, rising 0.21% to 7,428.78.

However, the technology sector, particularly chip stocks, faced significant pressure. The Philadelphia Semiconductor Index plummeted 4.49%, with major players like Micron and AMD falling over 8%, and Intel down 5.86%. Taiwan Semiconductor Manufacturing Company's (TSMC) ADR also declined by 1.70%. This downturn contrasts with gains in traditional economic sectors, such as consumer staples, with Coca-Cola rising nearly 5% on better-than-expected earnings, and aerospace, as Boeing's stock increased 4.8% amid progress in its turnaround plan.

Investor sentiment remains cautious due to concerns about substantial investments in artificial intelligence by tech giants like Alphabet, Microsoft, and Amazon. Despite these worries, Microsoft's stock rose 1.1% ahead of its earnings report, while Amazon saw a slight dip of 0.2%. Apple's stock climbed nearly 1% to $340.08, briefly touching a high of $342.89, marking the first time its market capitalization surpassed the $5 trillion milestone.

Falling oil prices provided some support to the broader market. Additionally, reports emerged of consultations between Iran and Saudi Arabia regarding the Strait of Hormuz. The Nasdaq Composite Index bucked the trend of the Dow and S&P 500, closing down 0.22% at 24,876.91, largely due to the weakness in tech and chip stocks.