Wall Street Slides Again; Tech Stocks Weigh on Market
US stock markets weakened again during Tuesday's trading (August 11) as hopes for the reopening of the Strait of Hormuz began to fade. This uncertainty reignited doubts regarding whether the US and Iran could reach a broader agreement to de-escalate the conflict.
The S&P 500 index fell 0.32% to 7,728.20, marking a decline for the second consecutive day. The Nasdaq Composite dropped 0.60% to 26,445.45, while the Dow Jones fell 184 points, or 0.34%, to 53,791.85.
The heaviest pressure came from the communication services sector, which fell more than 2%. Alphabet shares slumped 3.8%, while AppLovin dropped nearly 6%. Alphabet has also recorded four negative sessions in five days following Google's announcement of structural changes to its artificial intelligence division.
The information technology sector also weighed on the market. Nvidia failed to sustain early-session gains and closed slightly lower, despite the company previously announcing partnerships with six major asset managers to raise over US$500 billion for AI infrastructure development.
Apple shares also fell more than 1%, adding to the pressure on technology indices. Weakness in several large-cap stocks kept investor sentiment cautious amidst geopolitical uncertainty and concerns regarding the direction of US interest rates.
Newsmaker Analysis: Wall Street is currently facing two primary pressures: the weakness of technology stocks and rising geopolitical risks stemming from the Strait of Hormuz. If US-Iran tensions persist and oil prices remain high, inflation concerns could once again drive up yields and put pressure on growth stocks. The next focus is on US CPI data, which could determine whether Wall Street's correction continues or if the market rebounds.
Source: Newsmaker.id
