Mixed Markets: Dow Hits Record High as Tech Stocks Fall
The stock market experienced a mixed morning on August 5, with some sectors rising and others falling. The Dow Jones Industrial Average (DJINDICES:^DJI) was up 0.80% to 54,521, while the S&P 500 (SNPINDEX:^GSPC) climbed 0.03% to 7,738, putting both in record-high territory. In contrast, the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.26% to 26,517.
The gold price surged 3.60% to $4,242.40, and the 10-Year Treasury yield rose 0.02 to 4.64%. Healthcare, basic materials, and tech stocks were among those rising, while industrials, energy, and utility stocks saw declines. Eli Lilly shares jumped on upbeat guidance from the pharmaceutical giant.
However, Advanced Micro Devices (AMD) stock fell over 6% despite beating earnings expectations, as investor concern over high capital expenditure weighed on valuations. Space Exploration Technologies tumbled almost 9% after its first public earnings report yesterday, and Uber Technologies dropped following disappointing quarterly results. Shopify soared 17% on robust earnings.
Nvidia gained after SpaceX CEO Elon Musk announced the company would use only Nvidia chips, further pressuring AMD. With valuations at record highs, investors are looking for strong results this earnings season, and AMD's performance fell short with a forward P/E ratio of 66. The semiconductor sector will be in focus today as Sandisk and Western Digital report earnings after the bell.