11:59 AM EDT, 07/17/2024 (MT Newswires) -- US equity indexes traded mixed as a sharp sell-off in semiconductor names hit the Nasdaq Composite and S&P 500, bringing geopolitical risk to the fore.

The Nasdaq Composite slumped 2.6% to 18,051.5 while the Dow Jones Industrial Average rose 0.4% to 41,133.4 intraday. The S&P 500 dropped 1.2% to 5,599.7 after midday on Wednesday. The index finished Tuesday at an all-time high for the 10th time in the last 11 sessions, according to a note from D. A. Davidson. The index has risen for 28 out of the past 37 weeks, the strongest such streak in 35 years, Deutsche Bank said in a note.

Technology, communication services, and consumer discretionary sank while energy and real estate led the gainers intraday.

Citing a news report from Bloomberg, the D.A. Davidson note said the US is considering the implementation of a foreign direct product rule that would allow the US to impose controls on foreign-made products that incorporate even the smallest amount of American technology, with the focus on semiconductor chips manufactured in China.

ASML ( ASML ) could be targeted with the most severe US trade restrictions if it continues providing China with access to advanced semiconductor technology, a report from Bloomberg said late Tuesday, citing people familiar with recent discussions. Shares of ASML ( ASML ) sank 11% intraday, the worst performer on the Nasdaq.

Taiwan Semiconductor Manufacturing Company ( TSM ) was down 6.4% after Donald Trump, former US president, told Bloomberg Businessweek that Taiwan should pay the US for its defense as "it doesn't give us anything."

In economic news, US industrial production rose 0.6% in June, above expectations for a 0.3% increase in a survey compiled by Bloomberg and an upwardly revised 0.9% increase in May. June housing starts rose 3% from the previous month to a 1.353 million annual rate, above expectations compiled by Bloomberg for a 1.30 million rate after a decrease to a 1.314 million pace in May.

The US 10-year Treasury yield rose 1.4 basis points to 4.18%, and the two-year rate climbed 1.7 basis points to 4.46%.

West Texas Intermediate crude oil jumped 2.2% to $82.54 a barrel.