Key facts
- The S&P 500 fell 0.3%, the Dow Jones Industrial Average rose 0.2%, and the Nasdaq composite dropped 1% amid sharp volatility.
- High-flying artificial intelligence stocks, including chipmakers, reversed early gains, contributing to market declines.
- Micron Technology's stock experienced a significant intraday swing, falling 10% from an earlier gain.
- Easing oil prices provided some relief, with Brent crude falling 3% to $91.45, though geopolitical tensions resurfaced.
- Airline stocks and J.M. Smucker saw gains, while Nuvalent surged on acquisition news.
Wall Street experienced a volatile trading session on Tuesday, with artificial intelligence-related stocks driving significant market swings. The S&P 500 ultimately closed down 0.3%, falling from an earlier gain of 1% and pulling back from its recent all-time high. The Dow Jones Industrial Average managed a slight gain of 0.2%, while the Nasdaq composite ended down 1%.
The sharp reversals were largely attributed to the performance of AI stocks. Companies like Micron Technology, Marvell Technology, and Advanced Micro Devices, which had initially risen, saw their shares plummet, erasing early gains. Micron Technology, in particular, swung from a 4% jump to a 10% drop before finishing with a 1.4% loss, highlighting the extreme volatility in the sector.
Despite the weakness in AI stocks, some positive news emerged. OpenAI filed for an initial public offering, and SpaceX's IPO is anticipated soon, signaling continued investor appetite for tech listings. Additionally, easing oil prices provided some market support, with Brent crude falling 3% to $91.45, although geopolitical tensions resurfaced after President Donald Trump blamed Iran for downing a US military helicopter.
Treasury yields eased with the drop in oil prices, with the 10-year Treasury yield falling to 4.52%. Airline stocks benefited from lower fuel cost expectations, and J.M. Smucker reported stronger-than-expected profits. The biotech company Nuvalent surged nearly 40% on news of its acquisition by GSK.
Overall, the S&P 500 finished down 19.08 points at 7,386.65, the Dow Jones Industrial Average gained 86.10 to 50,872.11, and the Nasdaq composite fell 250.84 to 25,678.82. In international markets, South Korea's Kospi saw a significant rebound.