U.S. stock markets closed Tuesday without a clear trend. The Dow Jones Index finished up 1.0% at 52,747 points the previous day. In contrast, the technology-heavy Nasdaq 100 saw a decline of 1.0%, settling at 27,763 points, while the broader S&P 500 fell moderately by 0.2% to 7,429 points.
Semiconductor stocks again failed to gain traction, experiencing sharp drops. Some market analysts suggested this reflects a process known as “sector rotation,” wherein investors are cashing in profits from highly appreciated AI and chip stocks, such as Nvidia, AMD, and Broadcom, shifting their funds into other industries. This profit-taking is partly driven by lingering concerns regarding the valuations of these major firms.
On a more optimistic note for certain companies, SpaceX shareholders saw a significant boost, as the stock rose strongly by 2.6% just before older shareholders were allowed to sell their shares. Despite this increase, the stock price, now at 116 US dollars per share, remains 14% below the initial issuance price and more than 40% below its all-time high.
Sentiment was buoyed by further declines in oil prices, a trend attributed in part to the calmness observed in the Iran conflict. On Tuesday evening, Brent crude from the North Sea traded at $83.86 per barrel, representing a decrease of 5.1% (450 cents) compared to the previous trading day.
U.S. investors are now keenly awaiting forthcoming corporate earnings reports, additional indicators regarding the trajectory of the AI market and monetary policy, and developments in the Gulf region.
In currency markets, the Euro strengthened slightly on Tuesday evening, trading at $1.1387 per euro, meaning the dollar was worth €0.8782. Gold prices, meanwhile, fell significantly, posting a decrease of 1.2% overnight, with a fine ounce priced at $4,027. This equates to a price of 113.69 euros per gram.
