Forex
S&P 500 Falls as AI Fears Hit Software Makers, Interest Rate Hike Looms
The S&P 500 index fell by 0.58% on Tuesday, closing at 7,673.52 points. The decline was driven in part by concerns over AI disruption, as OpenAI's launch of its newest model, GPT-6 Astra, reignited speculation about the impact of AI on specialized software companies.
Salesforce and Intuit fell around 4%, while ServiceNow dropped 5%. Intel jumped 9% after striking a deal with Amazon to develop custom AI chips. Qualcomm rose 3.2% following this partnership.
Investors are awaiting inflation data, which could influence the chances of an interest rate hike at the next Federal Reserve meeting on September 15-16. The current probability of a rate hike stands at 60%, according to the CME FedWatch tool.