US stock markets declined across the board on Tuesday evening, with the Nasdaq Composite Index falling over 1% as of press time. Semiconductor stocks experienced widespread selling pressure.

Following his previous criticism of Fed Chair Powell, Trump has now targeted Fed Governor Cook, stating that Cook "must resign" immediately. This comes amid reports that the Federal Housing Finance Agency Director has urged Attorney General Pam Bondi to investigate Cook regarding two mortgage loans.

The Nasdaq Golden Dragon China Index edged slightly lower, with Chinese ADRs showing mixed performance. iQiyi surged as much as 8% at one point, while Baidu fell over 3% and XPeng declined more than 2%.

**Intel Leads Semiconductor Decline**

Semiconductor stocks posted sharp losses in late trading, with the Philadelphia Semiconductor Index dropping nearly 2%. Intel led the decline, falling over 6%, while Micron Technology dropped more than 5%. ARM, Broadcom, and Advanced Micro Devices each declined over 3%, while NVIDIA and Taiwan Semiconductor Manufacturing Company fell more than 2%.

According to US media reports on Monday, the Trump administration is considering acquiring a 10% stake in Intel Corporation. If implemented, the US government would become Intel's largest shareholder.

White House officials and sources familiar with the matter revealed that the government is considering converting Intel's approved $10.9 billion federal subsidy under the CHIPS and Science Act into equity stakes to support US semiconductor manufacturing and revitalize the struggling chipmaker. Intel's current market capitalization stands at approximately $103.6 billion.

The report noted that questions remain about whether this idea has broad support within the government, the specific size of the stake, and whether the government will proceed with the plan. It's also unclear whether the government would seek similar arrangements with other companies receiving CHIPS Act subsidies.

**Estée Lauder Opens Sharply Lower**

Estée Lauder opened significantly lower, falling as much as 6% at one point.

The company projected adjusted earnings per share of $1.90-$2.10 for the fiscal year ending June 2026, below analysts' prior expectations of $2.21. The company expects rising US tariffs to impact earnings by approximately $100 million. Estée Lauder also forecasted organic annual revenue growth of 0% to 3%, representing a turnaround from the 8% decline in the previous fiscal year.

Additionally, retail giant Target fell as much as 10% following its earnings report.

Target reported second-quarter net sales of $25.21 billion, compared to estimates of $24.93 billion. Adjusted earnings per share came in at $2.05, beating the expected $2.01. Target maintained its full-year adjusted earnings per share guidance of approximately $7-$9, with market estimates at $7.29. Target appointed Chief Operating Officer Michael Fiddelke as the new Chief Executive Officer.