Oil Prices, Chip Stocks Tumble

US stocks pulled back from their records Tuesday as the price of crude oil tumbled again and technology stocks faltered.

• The S&P 500 fell 44.59 points, or 0.8%, to 5,815.26, a day after setting an all-time high for the 46th time this year.
• The Dow Jones Industrial Average fell 324.80 points, or 0.8%, to 42,740.42.
• The Nasdaq composite fell 187.10 points, or 1%, to 18,315.59

Chip stocks fell after supplier ASML warned of a slower recovery outside of the AI boom. Treasury yields eased as trading for US bonds resumed following a holiday.

Nvidia was the heaviest weight on the S&P 500 and fell 4.5%, the AP reports. It's a cooldown for the chip company, whose stock is still up 164.5% for the year so far on euphoria about the profits created by the boom around artificial-intelligence technology. Stocks for companies across the chip industry fell after Dutch supplier ASML reported its latest quarterly results. CEO Christophe Fouquet said AI continues to offer strong upside potential, but "other market segments are taking longer to recover," and ASML's stock trading in the United States fell fell 17.7%.

Exxon Mobil dropped 3%, and energy stocks fell to some of Wall Street's sharpest losses after oil prices tumbled roughly 4%. A barrel of Brent crude, the international standard, has fallen back below $75 from more than $80 last week. Crude prices have been weakening as China's flagging economic growth raises concerns about demand for oil. At the same time, worries have receded about Israel possibly attacking Iranian oil facilities as part of its retaliation against Iran's missile attack early this month. Iran is a major producer of crude, and a strike could upend its exports to China and elsewhere.

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Helping to keep the S&P 500 and Dow close to their records set on Monday were gains for several financial companies following better-than-expected profit reports for the summer. Charles Schwab jumped 6.1%. More customers opened brokerage accounts at the company, helping to bring its total client assets to a record $9.92 trillion. Walgreens Boots Alliance was another winner, up 15.8%, after topping analysts' forecasts. The drugstore chain also said it will close about 1,200 locations over the next three years as it tries to turn around its struggling US business. Chipmaker Wolfspeed jumped 21.3% to trim its loss for the year to 68.1% after the Biden-Harris administration announced Tuesday that it plans to provide up to $750 million in direct funding to the company.

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