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US tech shares tumble
Analysts described the development as an inevitable cooling in large tech names including Facebook parent Meta and artificial intelligence player Nvidia, after outsized gains in 2024.
The S&P 500 and Nasdaq finished decisively lower on July 17 after talk that tech equities are overbought, while the Dow pushed to a third straight record high.
Analysts described the development as an inevitable cooling in large tech names including Facebook parent Meta and artificial intelligence player Nvidia, after outsized gains in 2024.
The Dow, however, continued to benefit from an inflow of funds to underperforming names from other sectors. The blue-chip index finished up 0.6 percent at 41,198.08.
The broad-based S&P 500 dropped 1.4 percent to 5,588.27, while the tech-rich Nasdaq Composite Index slumped 2.8 percent to 17,996.92.
Semiconductor companies, which have helped lead the market in 2024, were also pressured by reports the Biden administration is considering new export controls to limit Chinese chip imports and comments from Donald Trump that Taiwan "should pay" the United States for defense.
"We have seen a relentless rally and a pause might be healthy at this point," said Angelo Kourkafas of Edward Jones.
"Today, we had some concerns around semiconductors and chip makers which have been under pressure. And that's been kind of adding to the rotation narrative."
Data showed that US industrial production cooled in June but still exceeded analyst expectations, with manufacturing and utilities output both rising.
A Federal Reserve report said there has been "slight to modest" growth in economic activity in most parts of the country over recent weeks.
A growing number of districts have, however, reported "flat or declining activity," said the Fed's "beige book" survey of economic conditions, which pointed to November's US presidential election and inflation as contributing to uncertainty.
Among individual companies, Johnson & Johnson rose 3.7 percent after reporting better-than-expected profits on a 4.3 percent increase in sales.
The drug and medical device company expressed confidence as it pursues regulatory approval of new products.
JB Hunt Transport Services fell 6.9 percent after reporting lower profits on a seven-percent slide in revenues as the trucking and logistics company contends with tepid demand.
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