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S&P 500, NASDAQ SLIDE WITH AI SKITTISHNESS IN SPOTLIGHT

The speed and scale of the AI buildout helped investors lose their risk appetite on Tuesday.

A dawning realization that the Federal Reserve under Chair Kevin Warsh has veered toward a rate hike bias to thwart war-related price pressures also weighed on interest-rate-sensitive tech megacaps.

The Dow Jones Industrial Average .DJI fell 47.22 points, or 0.09%, to 51,665.49, the S&P 500 .SPX lost 107.32 points, or 1.44%, to 7,365.47 and the Nasdaq Composite .IXIC lost 579.56 points, or 2.21%, to 25,587.04.

The tech-heavy Nasdaq has fallen in seven of last 12 sessions. Five of those daily losses have been steeper than 1%.

The S&P 500 tech sector .SPLRCT, still up 16.6% so far this year, has shed 5.6% so far in June.

Nvidia NVDA.O, the one-time star of the AI spectacle, is currently slightly underperforming old Dow, with their respective 7.3% and 7.5% year-to-date gains.

Micron MU.O tumbled 13.2% the day before the chipmaker's expected quarterly earnings report.

U.S.-Iran peace negotiations trudged along after U.S. President Donald Trump claimed Iran agreed to inspections into "infinity," a statement disputed by Tehran, even as the U.N. commenced efforts to evacuate hundreds of ships stranded in the Gulf of Hormuz.

Front-month U.S. WTI and Brent crude prices settled down 0.9% and 1.1%, respectively, suggesting easing supply risks arising from a potential long-term traffic snarl at the Strait.

A report from S&P Global showed U.S. business activity expanded at a slightly accelerated pace in June, but under the surface, companies are cutting staffing due to rising cost inputs, and rising new orders was largely attributable to stockbuilding amid geopolitically driven supply worries.

On Wednesday, a pair of housing market indicators—new home sales and mortgage demand—will shed light on the health of a sector bedraggled by elevated borrowing costs, materials inflation, and fading consumer spending power.

But the fireworks are scheduled for Thursday, when PCE, GDP, durable goods, jobless claims are sure to give the data-hungry Fed something to chew on.

Here's your closing snapshot:

(Stephen Culp)

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EARLIER ON LIVE MARKETS:

US TECH SHARES SELLING OFF BUT EARNINGS ESTIMATES RISING CLICK HERE

WITH A LESS STRESSFUL TEST, THE FOCUS IS ON BASEL III CLICK HERE

WITH A LITTLE PRESSURE ON THE GAS PEDAL, U.S. BUSINESS ACTIVITY ACCELERATES A TAD CLICK HERE

TECH, CHIPMAKERS LEAD EARLY LOSSES ON WALL STREET CLICK HERE

CRUISIN FOR A BRUISIN: STOCKS SET FOR TECH-DRIVEN SELLOFF CLICK HERE

DISREGARD EUROPEAN CHEMICALS' Q2 EARNINGS BEATS CLICK HERE

HEDGE FUNDS BLINK FIRST IN CROWDED AI TRADE CLICK HERE

IS THE EURO ZONE INFLATION SCARE OVER? CLICK HERE

DRINKS AND DRUGS OFFER SHELTER AS STOXX DROPS 1% CLICK HERE

BEFORE THE BELL: TECH SELLOFF TO DRAG EUROPE LOWER CLICK HERE

YEN ZOOMS INTO TROUBLE CLICK HERE