Intel Corp.

Stocks sink as technology rally fades; Qualcomm drops

A seven-day surge in technology stocks ended Tuesday after President Donald Trump blocked Singapore-based chipmaker Broadcom's effort to buy Qualcomm. Trump said he opposed the $117 billion deal because it could have been detrimental to national security.

The Dow Jones industrial average climbed as much as 197 points in early trading after investors were pleased with a Labor Department report that showed inflation remained in check last month. But the gains soon faded.

Technology stocks were at record highs after a recent rally. While Qualcomm had rejected all of Broadcom's offers, investors are now wondering if other deals might also be blocked or if companies will...