Nasdaq Fights Back After Global Chip Rout - But AI Worries Aren’t Going Away

TLDR

• The Nasdaq pared losses to finish nearly flat, while the Dow rose 1% and the S&P 500 gained 0.3% on Tuesday.
• Chip stocks sold off after a ~10% drop in South Korea’s KOSPI index, dragging semiconductors lower on AI valuation concerns.
• Nvidia fell nearly 5% on reports it may back a $250 billion funding deal for OpenAI, raising circular financing worries.
• The Fed kicks off its two-day meeting Tuesday, with traders pricing in a 31.5% chance of a surprise rate hike Wednesday.
• Coca-Cola jumped 6.56% after raising its full-year outlook following a Q2 earnings beat.

The Nasdaq Composite finished nearly flat on Tuesday, recovering from an earlier slide as chip stocks sold off globally. The Dow Jones Industrial Average gained around 1%, and the S&P 500 rose roughly 0.3%.

The session was shaped by a sharp drop in Asian semiconductor stocks. South Korea’s KOSPI index fell around 10%, sending ripples through US chip names. The iShares Semiconductor ETF dropped again, extending Monday’s losses.

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