Dow and S&P Reach New Highs Despite AI-Related Worries

The Dow Jones Industrial Average and S&P 500 both hit new all-time highs on Wednesday, despite concerns about AI-related stocks. The Nasdaq Composite, heavily weighted with these companies, fell 0.8% to 26,363. LPL Financial's Adam Turnquist notes that markets are navigating 'no shortage of crosscurrents', including the war in the Middle East and rising interest rates.

The Dow Jones rose 0.5% to 54,349, while the S&P 500 dipped 0.2% to 7,723. The semiconductor sector was particularly hard hit, with stocks down over 20%. Turnquist says that investors are demanding evidence of returns from AI-related spending.

Amgen (AMGN) was the top performer on the Dow Jones after reporting strong second-quarter results and raising full-year guidance. SpaceX (SPCX), on the other hand, plummeted in response to its first earnings report as a publicly traded company. Management beat expectations but not by enough, downplaying talk of selling China-based electric vehicle operations.