12:40 PM EDT, 07/17/2024 (MT Newswires) -- US equity indexes traded mixed after midday on Wednesday as a sell-off in semiconductor names pushed the Nasdaq Composite and S&P 500 lower, bringing geopolitical risk to the fore.

The Nasdaq Composite slumped 2.7% to 18,010.1, while the Dow Jones Industrial Average rose 0.5% to 41,148.2.

The S&P 500 dropped 1.3% to 5,591.5. 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. Deutsche Bank said in a note that the index has risen for 28 out of the past 37 weeks, the longest winning streak in 35 years.

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. ASML ( ASML ) shares sank almost 12% intraday, the worst performer on the Nasdaq.

Taiwan Semiconductor Manufacturing Co. ( TSM ) was down 6.3% after Former President Donald Trump told Bloomberg Businessweek that Taiwan should pay the US for its defense as "it doesn't give us anything."

The technology sector plunged 3.4% intraday, with chipmakers Qualcomm ( QCOM ) , Nvidia ( NVDA ) , and Broadcom ( AVGO ) all down. The communication services and consumer discretionary also slumped intraday.

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 following 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 incoming macroeconomic data will determine the path of monetary policy, Federal Reserve Governor Christopher Waller said Wednesday at a Kansas City Fed event, noting multiple trajectories. The most likely scenario is price pressures continue to be "uneven," but consistent with progress in inflation, meaning a rate cut in the "near future" is uncertain and is a matter of timing.

The US 10-year Treasury yield was down less than one basis point to 4.16%, while the two-year rate increased fractionally to 4.45%.

West Texas Intermediate crude oil jumped 2.3% to $82.57 a barrel.

Excluding inventories in the Strategic Petroleum Reserve, US commercial crude oil stocks fell by 4.9 million barrels during the week ended July 12, following a 3.4-million-barrel decline in the previous week, versus the 1.1-million-barrel drop expected in a Bloomberg survey.

Gold was down 0.4% to $2,458.9 an ounce, while silver slumped 3.6% to $30.32.