AI Stocks Defy Downturn as US Market Declines
The US stock market experienced a broad decline on Tuesday, with the Dow Jones falling by 628 points or 1.18%, and the S&P 500 down 0.58%. However, amidst this downturn, AI-related stocks continued to thrive.
Nvidia, however, lagged behind, dropping 2.01%, while Tesla held above $370. The semiconductor sector saw a mixed performance, with AMD rising by 5.90% and Intel increasing by 9.05%. Qualcomm climbed 3.17% and Broadcom advanced 2.98%.
The divergence in the market can be attributed to two factors: increased expectations for Fed rate hikes due to strong US employment data, which put pressure on overall valuations; and growing concerns over AI replacing software jobs following OpenAI's latest model release.
In reality, capital continues to flow into the AI sector, albeit at a slower pace than before. The Nasdaq-100 index closed above 29,400 points, with its technical structure remaining relatively intact. If this level holds, it could lead to a move towards 29,650 and then 30,000.