Defensive stocks in the Dow offset a global semiconductor rout that pulled tech-heavy indices down sharply on Tuesday.
The Dow Jones Industrial Average closed higher Tuesday, defying a broader market selloff driven by a sharp decline in semiconductor stocks. The index’s tilt toward defensive sectors like healthcare and consumer staples shielded it from losses that dragged the Nasdaq and S&P 500 into negative territory.
A global rout in memory-chip stocks began in Asia, where South Korea’s chip-heavy benchmark plunged nearly 10% in a single session. The downturn spread to European and U.S. tech sectors, with semiconductor names bearing the brunt of the selling. Meanwhile, the Dow’s composition—light on tech and heavy on value—limited its exposure to the worst of the damage.
S&P Global’s flash PMI data added to pressure, with stronger-than-expected readings fueling concerns about persistent inflation and potential monetary policy tightening. The divergence between the Dow and other indices reflected a rotation away from crowded, momentum-driven trades rather than broad market strength.