U.S. stock indexes declined at the close of trading on Tuesday.

The Nasdaq Composite lost more than 1% following a drop in chipmaker shares after Samsung Electronics published its preliminary quarterly earnings report.

The South Korean company, one of the world's largest manufacturers of semiconductor components, increased its operating profit nineteenfold in the second quarter to a record high. Samsung's revenue in the past quarter more than doubled, also reaching a record, but came in slightly below market expectations.

Against this backdrop, shares of both Samsung itself and other sector representatives in Asia, Europe, and the United States fell.

Negative sentiment for the sector was also fueled by a Reuters report that Chinese startup DeepSeek is developing its own AI chip.

Shares of Marvell Technology Inc. fell 7.5%, KLA Corp. 7.2%, Advanced Micro Devices Inc. 6.5%, Micron Technology Inc. 4.7%, and Broadcom Inc. 0.8%.

Investor sentiment on Tuesday was also hurt by signs of escalating tensions in the Middle East. Oil prices rose after reports of attacks on a number of vessels in the Strait of Hormuz area. Near the end of trading in New York, the U.S. Treasury announced the termination of a license that had allowed the delivery, sale, and other transactions involving oil and petroleum products from Iran.

Shares of major U.S. oil and gas companies ExxonMobil Holdings Corp. and Chevron Corp. rose 3.9% and 3.5%, respectively.

Among the biggest decliners in the Dow Jones were shares of Caterpillar Inc. (-3.1%), Honeywell International Inc. (-2.7%), and Sherwin-Williams Co. (-2%).

At the same time, shares of Johnson & Johnson (+3.1%), UnitedHealth Geoup Inc. (+2.4%), and Procter & Gamble Co. (+2.3%) posted solid gains.

The market capitalization of Walmart Inc., which announced price cuts on thousands of items in its stores, increased by 0.8%.

The share price of fintech company Fiserv Inc. rose 1.8% following a Wall Street Journal report that several major U.S. banks, including JPMorgan Chase & Co. and Bank of America Corp., had been in talks to buy the company's payment infrastructure business that supports debit card transactions.

The market capitalization of electric vehicle manufacturer Rivian Automotive Inc., which announced an offering of 75 million common shares, fell 18%.

Shares of SpaceX, added to the Nasdaq 100 index on July 7, fell 6.8%.

A U.S. Commerce Department report published Tuesday showed a sharp increase in the country's trade deficit in May. It widened by 42.1% from the previous month to $77.6 billion. According to revised data, the trade deficit in April amounted to $54.6 billion, not $55.9 billion as previously reported. Analysts on average had expected the deficit to increase by 40.4% in May from the previously announced April level to $78.5 billion, according to Trading Economics.

This week, the market is also awaiting the publication of the minutes from the Federal Reserve's June meeting.

The Dow Jones Industrial Average fell 0.25% by the close of trading on Tuesday, to 52,925.15 points.

The Standard & Poor's 500 decreased by 0.45% to 7,503.85 points.

The Nasdaq Composite index dropped 1.16% to 25,818.69 points.