US stocks fall after Nancy Pelosi's visit to Taiwan raises tensions with China
- US stocks fell on Tuesday after House Speaker Nancy Pelosi landed in Taiwan earlier in the day.
- Investors continue to assess heightened tension between the US and China amid Pelosi's trip.
- Taiwan is a key manufacturer of semiconductor chips that power everything from phones to cars.
US stocks were lower on Tuesday as investors continue to assess the rising tensions between the US and China following House Speaker Nancy Pelosi's trip to Taiwan.
As part of a broader trip to Asia, Pelosi landed in Taipei, Taiwan this morning, and the arrival of the number three US official has angered China considerably. China's military ran various military exercise drills and also conducted missile tests.
China claims Taiwan as part of its territory and has said it would "not sit idly by" if such a senior ranking US politician visits the island. China has been seeking a "reunification" with Taiwan for decades.
Taiwan is a key manufacturer of semiconductor chips that power everything from phones to cars, and its untenable relationship with China is one reason why Congress passed the CHIPS act last month, a $280 billion package that incentivizes the onshoring of semiconductor manufacturing in America.
Here's where US indexes stood at the 4:00 p.m. ET close on Tuesday:
- S&P 500: 4,091.36, down 0.66%
- Dow Jones Industrial Average: 32,396.76, down 1.22% (401.64 points)
- Nasdaq Composite: 12,348.76, down 0.16%
Pelosi's trip to Taiwan not only dinged US stocks on Tuesday, but it dragged down the prices of Taiwan's stock market as well. The Taiwan Stock Exchange Weighted Index fell as much as 2.1% in Tuesday's trading session. The country's largest company, Taiwan Semiconductor, fell more than 3% in Taiwan, but traded about flat on the New York Stock Exchange.
An obscure Chinese stock, AMTD Digital, soared as much as 200% on Tuesday. The surge extended its post-IPO rally to more than 32,000% as retail investors chase the momentum and pile in. The company itself has admitted it doesn't have any clue as to what's been behind the surge.
Russia's Nord Stream 1 pipeline continues to see a trickle of natural gas flow into Europe as the country claims that it is essentially helpless in delivering necessary repairs to the pipeline's turbines.
Pinterest stock soared nearly 20% on Tuesday after activist investor Elliot Management revealed that it built a 9% stake in the social media platform, making it the biggest investor in the company. News of Elliot's stake helped investors brush aside disappointing second-quarter earnings results.
Uber stock jumped nearly 20% on Tuesday following strong second-quarter earnings results. The company saw heavy demand for its ride-hailing service despite the ongoing rise inflation. That demand allowed the company to report its first ever quarter of positive free cash flow.
West Texas Intermediate crude oil rose 0.38% to $94.25 per barrel. Brent crude, oil's international benchmark, edged up 0.16% to $100.19.
Bitcoin jumped 0.89% to $23,058. Ether prices rose 4.40% to $1,647.71.
Gold fell 0.50% to $1,778.80 per ounce. The yield on the 10-year Treasury rose 19 basis points to 2.76%.
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