- US stocks fell on Tuesday as House Speaker Nancy Pelosi is scheduled to land in Taiwan this morning.
- Investors are assessing heightened tension between the US and China ahead of Pelosi's trip.
- Taiwan is a key manufacturer of semiconductor chips that power everything from phones to cars.
US stocks fell on Tuesday as investors assess the rising tensions between the US and China ahead of House Speaker Nancy Pelosi's trip to Taiwan.
As part of a broader trip to Asia, Pelosi is expected to land in Taiwan later this morning, and the expected arrival of the number three US official has angered China considerably in recent days.
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 shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 4,106.39, down 0.3%
- Dow Jones Industrial Average: 32,597.46, down 0.61% (200.94 points)
- Nasdaq Composite: 12,323.67, down 0.37%
Pelosi's anticipated 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%.
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.
West Texas Intermediate crude oil rose 0.52% to $94.38 per barrel. Brent crude, oil's international benchmark, edged up 0.41% to $100.44.
Bitcoin fell 0.19% to $22,810. Ether prices fell 0.07% to $1,577.
Gold jumped 0.74% to $1,801.00 per ounce. The yield on the 10-year Treasury rose one basis points to 2.59%.