Stocks closer lower for second day as investors continue selling AI plays Nvidia and Oracle
The S&P 500 fell on Wednesday as artificial intelligence giants Nvidia and Oracle came under pressure for a second day.
The broad market index dropped 0.28% to end at 6,637.97, while the Nasdaq Composite pulled back 0.33% to settle at 22,497.86. The Dow Jones Industrial Average declined 171.50 points, or 0.37%, to finish at 46,121.28.
Nvidia slid almost 1%, continuing its declines from Tuesday as heightened fears about the potentially circular nature of the AI industry drew investor skepticism. Earlier this week, the chipmaker announced a $100 billion partnership with OpenAI. Fellow leading AI player Oracle also fell for a second straight day, losing nearly 2% Wednesday.
The Nasdaq’s losses for the day were narrowed heading into the close as Intel surged more than 6% after Bloomberg, citing people familiar with the matter, reported that the chipmaker is seeking an investment from Apple. That comes just days after Nvidia said it would invest $5 billion in the company.
Beyond those names, shares of Micron Technology moved lower by almost 3% as the company’s earnings and forecast weren’t strong enough to impress investors, signaling that confidence in the AI trade is still in question.
The S&P 500 closed in the red on Tuesday, snapping a three-day winning streak, on those AI trade worries. The index had reached a new all-time intraday high earlier in the session and posted a record close Monday. The tech-heavy Nasdaq dipped as well, bogged down by Nvidia.
Traders could be profit-taking amid elevated market valuations, which Federal Reserve Chair Jerome Powell called out at a Tuesday press conference.
Source : Cnbc.com
