The sell-off contrasted with pockets of resilience elsewhere in the sector. South Korean appliance giant LG Electronics bucked the trend, forecasting a twofold increase in second-quarter operating profit. The company credits a U.S. tariff refund and sustained demand across its television and vehicle-component divisions for the positive outlook.
In section Market Quotes
Industrial Sector Slides as AI Rally Loses Momentum
A sudden retreat from artificial intelligence investments sent industrial and transportation stocks tumbling on Tuesday. As traders rebalance portfolios away from tech-heavy bets, major manufacturers including Corning and Caterpillar faced sharp declines, signaling a broader market shift away from the high-growth sectors that dominated the previous quarter.
Meanwhile, Rivian Automotive faced a severe market correction, tracking toward its worst single-day drop in 20 months. Investors reacted negatively to a new share offering, fueling skepticism regarding the electric-vehicle maker’s ability to manage ongoing cash burn. In the defense sector, Raytheon reached a deal with NATO allies to localize AMRAAM missile production within Europe, marking a significant shift in supply chain strategy for advanced air-to-air weaponry. Separately, Lockheed Martin committed roughly $5 million to a White House helipad project as part of ongoing government-contractor relations.
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