Dow sinks 330 points as Nvidia slides ahead of earnings report

US stocks moved lower on Tuesday as investors continued pulling back from semiconductor and technology stocks amid rising inflation concerns, elevated Treasury yields, and uncertainty surrounding the Middle East conflict.

The S&P 500 fell 0.5%, while the Nasdaq Composite dropped 0.57%.

The Dow Jones Industrial Average declined roughly 0.67%, or 332 points.

The weakness followed a sharp pullback across semiconductor shares that had previously fueled much of the market’s AI-driven rally this year.

Investors also continued monitoring oil prices and bond yields after President Donald Trump delayed a planned military strike on Iran.

At the same time, markets are preparing for several major corporate earnings releases later this week, including results from Nvidia and Walmart.

Chip stocks mixed

Some of the semiconductor and memory-chip stocks fell while others posted modest gains as investors reassessed valuations following the sector’s historic rally.

Nvidia shares fell roughly 0.69% in trading, putting the stock on track for a third consecutive daily decline ahead of the company’s earnings report scheduled for Wednesday.

Micron Technology gained about 1.94%, reversing a three-day losing streak.

Seagate Technology gained 0.21% after sliding sharply on Monday following comments from CEO Dave Mosley regarding manufacturing capacity constraints tied to surging AI-related demand.

Western Digital shares were up 0.84%.

Oil prices and Treasury yields remain market focus

Markets continued reacting Tuesday to shifting developments involving Iran and oil markets.

Brent crude futures fell about 1.4%, though prices remained above $110 per barrel after Trump said Monday that he had delayed a planned military strike against Iran while negotiations continued.

West Texas Intermediate crude also moved lower after Monday’s sharp gains.

Despite the modest pullback in oil, investors remain concerned that prolonged geopolitical tensions and higher energy prices could keep inflation elevated and pressure central banks to maintain tighter monetary policy.

The benchmark US 10-year Treasury yield eased slightly on Tuesday to around 4.62% after reaching its highest level since February 2025 during Monday’s session.

Investors await Fed minutes and major earnings

Attention is now shifting toward Wednesday’s release of minutes from the Federal Reserve’s latest policy meeting as investors look for additional signals about the direction of US interest rates.

Following hotter-than-expected inflation data released last week, traders have increasingly started pricing in the possibility of another Federal Reserve rate increase later this year rather than anticipated rate cuts.

According to CME FedWatch data, markets are now assigning more than a 40% probability of a rate hike by January.

Meanwhile, corporate earnings remain another major focus for investors.

Nvidia’s upcoming results are expected to provide important insight into whether demand tied to artificial intelligence infrastructure continues justifying the semiconductor sector’s elevated valuations.

Walmart’s earnings later this week could also offer a clearer view into how US consumers are responding to higher fuel prices and broader inflation pressures.