Nasdaq sets record high while oil dips
The Nasdaq notched a record high close on Tuesday, lifted by Micron Technology and other AI-related stocks, while the S&P 500 hovered just below a record high as oil prices traded around US$100 per barrel. Chip stocks added to recent gains while consumer-related software shares lost ground. Investors focused on the strong reception of Meta Platforms' AI assistant, which launched this month and…
On Tuesday, the Nasdaq achieved a record high close, propelled by Micron Technology and other artificial intelligence-related stocks, while the S&P 500 remained just shy of a record high as oil prices hovered around US$100 per barrel. Chip stocks contributed to the recent gains, whereas consumer-related software shares faced a decline.
Investors were particularly intrigued by Meta Platforms' recently launched AI assistant, Muse, designed to send emails and execute transactions on behalf of users. The success of Muse has spurred gains in AI-related chip stocks in recent days, although some expressed concerns that it could pose competition against retailers, online brokerages, and other consumer-focused companies.
Amazon temporarily barred Muse from conducting transactions on its platform. Jed Ellerbroek, a portfolio manager at Argent Capital Management, noted that numerous tech stocks experienced losses due to apprehensions surrounding Muse's capabilities, with users potentially managing insurance relationships, booking travel, and exploring purchases.
Ride-hailing apps Uber Technologies and Lyft witnessed declines exceeding 1%, while Charles Schwab dropped 6.1%, and Airbnb experienced a 3% decrease. Micron Technology and SanDisk exhibited gains, with Micron rallying 5% and SanDisk soaring nearly 7%. Oil prices fluctuated near US$100 a barrel, while the yield on the benchmark 10-year Treasury note oscillated around 4.94% following U.S. President Donald Trump's warning at the UN General Assembly regarding potential military action against Iran if a deal to resolve the Middle East conflict was not reached.
Investors also anticipated a U.S.-China summit taking place the following day, with speculation surrounding the potential extension of a trade truce with Beijing and discussions on AI regulation. Joe Saluzzi, head of equity market structure research at Themis Trading, emphasized the desire to reach an initial agreement on establishing a global framework instead of continuing the ongoing conflict.
The S&P 500 concluded at 7,764 points, essentially unchanged. The Nasdaq surged 0.5% to 27,244 points, marking its second consecutive record-high close. The Dow Jones Industrial Average saw a decline of 0.4% to 51,863 points. Trading activity on U.S. exchanges was notably robust, with 17.9 billion shares exchanged, surpassing the average of 16.3 billion shares observed over the preceding 20 sessions.
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