U.S. stocks slip as Qualcomm surges 7.5% on AWS chip partnership

  • Qualcomm announced a custom-chip partnership with Amazon Web Services for artificial intelligence infrastructure.
  • Brent crude rose 2.3% to $99.22, while West Texas Intermediate gained 3.3% to $94.54.
  • Canada's retaliatory tariffs on approximately $20 billion of U.S. goods took effect Tuesday.

All three major U.S. stock indexes weakened in early Tuesday trading, with the Dow Jones Industrial Average falling as much as 470 points, or approximately 0.9%, while the S&P 500 and Nasdaq Composite each declined about 0.2%. Chip stocks moved against the broader market: Qualcomm surged 7.5% after announcing a data center infrastructure partnership with Amazon Web Services (AWS), and TSMC ADRs gained 2.5%. Qualcomm said it would jointly develop multiple generations of custom chips to support AWS's artificial intelligence infrastructure, a major victory as it seeks to challenge Nvidia in the AI market. Intel rose more than 5% amid plans to raise PC CPU prices by 10%, while Oracle gained more than 5% to its highest level since late June. Oil prices climbed for a third straight trading day after weekend attacks between the United States and Iran, with Brent crude up 2.3% at $99.22 a barrel and West Texas Intermediate 3.3% higher at $94.54. Rising energy prices and Treasury yields have increased concern about inflation ahead of U.S. inflation data and the Federal Reserve's meeting next week. CME FedWatch Tool pricing indicated a 60% probability of a quarter-point rate increase. Canada's retaliatory tariffs on approximately $20 billion of U.S. goods also took effect, while individual stocks saw gains for Bloom Energy and Quantinuum and a more than 12% drop for Novartis.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.