Mixed Start for US Stocks Amid AI Optimism and Geopolitical Tensions

US stocks opened mixed on Monday, August 17, as investors weighed optimism around artificial intelligence against renewed tensions in West Asia and assessed the Federal Reserve's policy outlook.

The S&P 500 was little changed after posting its third consecutive weekly gain, while the Nasdaq Composite edged higher and the Dow Jones Industrial Average slipped. The S&P 500 traded around the flatline shortly after the opening bell, while the Nasdaq Composite gained 0.2%. The Dow fell about 123 points, or 0.2%.

Technology stocks provided some support to the market, with Micron Technology rising more than 4%. Chip stocks including Broadcom and Nvidia also moved higher. Investor sentiment around the AI sector was supported by reports of strong growth in artificial intelligence-related business.

Oil prices, meanwhile, moved higher as geopolitical tensions remained in focus. US West Texas Intermediate crude futures rose 0.5% to nearly $83 a barrel, while Brent crude, the international benchmark, gained 0.6% to around $89 a barrel. The move came after a senior Iranian official told Reuters that Iran would shift to an offensive posture if diplomacy with the US fails.