US stocks ended mixed on Wednesday as renewed pressure on technology counters pushed the Nasdaq and S&P 500 lower, while a sharp decline in oil prices lifted airline and travel-related shares.
The Dow Jones Industrial Average rose 182.06 points, or 0.35%, to 51,848.90. However, the S&P 500 slipped 0.10% to 7,358.22 while the Nasdaq Composite fell 0.43% to 25,476.64.
Airline and travel stocks emerged among the strongest performers after crude oil prices dropped to their lowest levels since the start of the Iran conflict. Expectations of increased tanker movements through the Strait of Hormuz helped ease energy supply concerns. The S&P 500 passenger airlines index surged 5.2%, while travel companies Expedia Group and Booking Holdings also advanced.
Technology shares remained under pressure as investors questioned lofty valuations across the artificial intelligence sector and reassessed spending by major hyperscalers. Chipmaker Micron Technology fell 0.3% ahead of its earnings release, though its shares later jumped in extended trading after reporting stronger-than-expected quarterly revenue and guidance.
Cerebras Systems plunged 19.6% after warning that full-year profit margins would be weaker than first-quarter levels. Sentiment was also affected after OpenAI unveiled its own in-house inference chip, dubbed Jalapeño.
Michael Monaghan, partner and portfolio manager at Founder ETFs, said, “The Middle East conversation is wrapping up … energy prices are coming off. But you continue to have the AI CapEx buildout where, for some reason, people like the recipients of the spend and have been punishing those doing the spending.”
Investors are now focused on the upcoming US Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation measure, for further clues on interest rate policy. Markets are increasingly pricing in a second rate hike before the end of the year, according to CME’s FedWatch Tool.
Reuters
