Wall Street indexes retreat amid chip and oil stock sell-off

Wall Street's major stock indexes experienced declines on Tuesday, with the Nasdaq leading the downturn as chip stocks sold off amid concerns over weak demand. Energy shares also fell in tandem with declining oil prices.

As of 2:06 p.m. EDT, the Dow Jones Industrial Average (.DJI) dropped 234.68 points, or 0.54%, to 42,831.30. The S&P 500 (.SPX) lost 29.57 points, or 0.50%, reaching 5,830.28, while the Nasdaq Composite (.IXIC) fell 151.01 points, or 0.82%, to 18,351.84.

Tech stocks decline on reports of US export limits

Shares of notable technology companies fell on Tuesday following a Bloomberg report indicating that the US government is considering limits on exports.

Biden administration officials have discussed capping sales of advanced AI chips from Nvidia Corp. and other American companies on a country-specific basis, according to the report.

Nvidia Corporation and Advanced Micro Devices each shed nearly 4% on Tuesday.

Shares of Microsoft and Oracle Corporation declined nearly 1% each, while those of Broadcom Inc. slumped 4.6% from the previous close.

Apple hits record-high

Apple’s shares reached a record high on Tuesday, hitting $237.49 before trading back down to around $235 per share. The company’s previous record of $237.23 was set on July 15.

At the time of writing, Apple’s shares were trading 2% higher.

Shares of Walgreens Boots Alliance jumped 14% on Tuesday after the company’s fourth-quarter earnings exceeded analysts’ expectations.

If the gains hold, it will mark the stock's best finish since March 2020, according to a CNBC report.

The company also announced plans to shut down 1,200 stores over the next three years, citing business struggles over the past year. Walgreens will close 500 stores in fiscal 2025 alone.

Tuesday’s gains provided relief after the stock has shed 62% this year, putting it on track for its third consecutive year of losses.

Focus on bank earnings

The banking sector has been in the spotlight as several major banks reported their earnings on Tuesday.

Shares of Goldman Sachs rose 2% after the investment bank beat third-quarter earnings estimates.

Similarly, Bank of America’s stock gained nearly 2% after the second-largest US lender reported a net profit per share that topped expectations despite a slight decline compared to the prior year.

Higher investment banking fees helped offset a year-on-year decline in net interest income, according to Investing.com.

Meanwhile, shares of Boeing rose over 1% after the company announced it had entered into a credit agreement worth $10 billion with a consortium of banks.

Boeing also filed a registration statement with the US markets regulator, allowing it to raise $25 billion through an offering of various debt securities and stock classes, Investing.com reported.

Oil prices extend losses

Oil prices extended their losses from previous sessions, tumbling 5% on Tuesday as concerns over demand overshadowed geopolitical tensions.

Media reports indicated that Israel is not planning to attack Iran’s oil facilities, easing fears of supply disruptions from that country.

Additionally, major energy agencies have trimmed their forecasts for growth in global oil demand for 2024 and 2025, further weighing on prices.

At the time of writing, Brent crude oil was priced at $73.86 per barrel, down 4.7%, while West Texas Intermediate oil was at $70.19 per barrel, down 4.9%.