NEW YORK, July 7, 2026, 11:04 EDT. The Dow Jones slipped with Caterpillar and Honeywell dragging on the index and offsetting strength in some defensive names.
- Dow drops, but losses are smaller than the S&P 500 and Nasdaq, as chip stocks pace the decline.
- Caterpillar and Honeywell are dragging on the price-weighted Dow, despite gains in a number of other components.
- Samsung gave a strong profit outlook, but traders kept worrying about AI chip demand. Now eyes turn to Fed minutes and results due next.
NEW YORK — U.S. stocks opened mostly lower Tuesday as regular cash trading began at 9:30 a.m. ET on the NYSE, with the session set to close at 4 p.m. The Nasdaq’s 2026 holiday calendar still puts the Independence Day break on July 3, not July 7. The Dow Jones Industrial Average (INDEXDJX:DJI) was down but outperformed the S&P 500 (INDEXSP:INX) and Nasdaq Composite (INDEXNASDAQ:IXIC), while chip stocks were hit hardest.
The Dow shed 56.13 points, or 0.11%, to finish at 52,999.78, according to Reuters/LSEG data. The S&P 500 ended down 46.28 points, or 0.61%, at 7,491.15. The Nasdaq dropped 385.99 points, or 1.48%, to 25,735.17. Numbers were at least 15 minutes delayed.
| Index | Last | Point move | % move |
|---|---|---|---|
| Dow Jones Industrial Average | 52,999.78 | -56.13 | -0.11% |
| S&P 500 | 7,491.15 | -46.28 | -0.61% |
| Nasdaq Composite | 25,735.17 | -385.99 | -1.48% |
Dow posted a small loss after wiping out a 233-point gain, turning negative despite advances in 18 of its 30 stocks, MarketWatch said. That’s a key split for investors keeping tabs on the Dow after Monday’s record high: the blue-chip index can stay steady even when just a couple expensive components drag the whole thing lower.
The Dow is made up of 30 U.S. blue-chip stocks and is price-weighted, according to S&P Dow Jones Indices. That means moves in higher-priced names like Caterpillar Inc. NYSE:CAT matter more to the index than similar percentage changes in lower-priced stocks.
Caterpillar dropped 5.8% to $913.78, while Honeywell International Inc. NASDAQ:HON slipped 2.3% to $225.94 late in the morning. MarketWatch reported the two names led losses for the Dow earlier, knocking about 377 points off the index, based on MarketWatch’s calculations.
| Dow pressure point | Google Finance ticker | Latest move | Why it mattered |
|---|---|---|---|
| Caterpillar | NYSE:CAT | -5.8% | Stock’s high price level made its drop a bigger drag on the Dow |
| Honeywell International | NASDAQ:HON | -2.3% | Stock was another weight on the blue chips |
| Dow index | INDEXDJX:DJI | -0.11% | Near 53,000 as losses in key names limited broader index move |
Defensive sectors helped steady things. Reuters reported consumer staples and healthcare led S&P 500 sector gains, with nine out of 11 sectors higher, though chip stocks weighed on the broad index. That spread leaves the Dow close to unchanged, which shows a shift into defensive names, not a broad move higher.
Selling in chips accelerated. Nvidia Corp. NASDAQ:NVDA dropped 1.8% after Reuters said China’s DeepSeek is making its own AI chip. The Philadelphia SE Semiconductor Index lost 5.5% for its lowest close in four weeks. Intel Corp. NASDAQ:INTC slid 8.2%. Micron Technology Inc. NASDAQ:MU was off 7.3%.
Samsung Electronics Co. KRX:005930 shares dropped in Seoul. The company saw its second-quarter operating profit surge 19 times, but that didn’t sway traders. Michael Field, chief equity market strategist at Morningstar, called the results “fundamentally good.” Still, once traders soured on Samsung, Field said that “negativity extends across markets.” Reuters
Kathleen Brooks, research director at XTB, put it bluntly. Samsung’s strong numbers triggered worries that the “AI chip sales boom cannot be sustained,” she said. Reuters
The move reversed right after the Dow ended at 53,055.91, closing above 53,000 for the first time. Broadcom Inc. NASDAQ:AVGO had climbed as it extended a custom-chip supply deal with Apple Inc. NASDAQ:AAPL through 2031. Jake Dollarhide, CEO at Longbow Asset Management, called the rally “very tenuous” on Monday. Reuters
Earnings have a bigger job now. Wall Street expects S&P 500 companies to show second-quarter profit growth of 24% from a year ago, with tech names looking at a 65% jump in earnings, LSEG I/B/E/S data cited by Reuters showed. Delta Air Lines Inc. NYSE:DAL and PepsiCo Inc. NASDAQ:PEP report later this week.
Rate risk remains in focus. Minutes from the Federal Reserve are up Wednesday, the first led by Chair Kevin Warsh. U.S. 10-year Treasury yields printed at 4.489%, according to Reuters/LSEG. Brent crude added 2.58% to $73.85.
