Tech Weighs on Nasdaq as US Stocks Open Mixed
US stock markets opened on a mixed note yesterday, with technology stocks weighing heavily on the Nasdaq. The Dow Jones Industrial Average rose 0.3%, while the S&P 500 was little changed.
The Nasdaq Composite fell 0.5% as weakness in several tech stocks offset gains in other sectors. Markets remained focused on quarterly earnings, particularly from companies linked to artificial intelligence (AI).
Investors are trying to determine whether heavy spending on AI infrastructure will translate into stronger profits. This has led to sharp reactions in stocks that have benefited from the AI boom.
Nvidia gained more than 3% on Wednesday after SpaceX said it would exclusively use the chipmaker's processors. However, SpaceX shares remained close to their all-time lows ahead of the expiry of a lock-up period later yesterday.
The Iranian Foreign Ministry spokesman Esmail Baghaei announced that Iran had reached an agreement with Oman for a temporary shipping route through the Strait of Hormuz. Oil prices steadied near $80 a barrel after this announcement.