S&P 500, Nasdaq Fall as Tech Rally Fades; Trump Cites Iran Helicopter Incident

The S&P 500 and Nasdaq fell on Tuesday as a rebound in technology shares faded and after U.S. President Donald Trump said Washington must react to Iran shooting down a U.S. Apache helicopter. The U.S. military later launched retaliatory attacks that reportedly struck several Iranian air defense and radar systems around the Strait of Hormuz, according to RTHK, while the Cboe Volatility Index hit its highest level since April 7. Technology stocks resumed Friday’s selloff after a bounce on Monday, with the S&P 500 tech index ending down 1.8% and the Philadelphia SE Semiconductor Index down 1.9% after earlier sliding as much as 8.6%. The Dow rose 86 points, or 0.2%, to 50,872, while the S&P 500 fell 19 points, or 0.3%, to 7,386 and the Nasdaq Composite dropped 250 points, or 1%, to 25,678. Investors are also watching May consumer price data due Wednesday and a SpaceX IPO expected Friday. SpaceX is aiming to raise US$75 billion and targeting a valuation of US$1.75 trillion. Shares of Broadcom fell 1.1% and Nvidia slipped 0.2%, while Ciena dropped 5.9% after announcing pricing on a convertible debt offering.