US stock indices continued to decline today. This is despite the fact that most stocks included in the broader S&P 500 index strengthened today. Oil companies, for example, did well, helped by rising commodity prices due to tensions between the US and Venezuela, the AP reported. However, these gains were outweighed by losses in artificial intelligence (AI) stocks, which are heavily represented in the indices.
US stocks fell, with the technology sector under heavy pressure
The Nasdaq Composite technology index fell 1.81 percent to 22,693.32 points. The S&P 500 fell 1.16 percent to 6,721.43 points. The Dow Jones index, which includes 30 leading industrial companies, closed 0.47 percent lower at 47,885.97 points.
Shares in Nvidia, a manufacturer of advanced chips for AI, fell 6.78 percent to close at $170.94 per share. Advanced Micro Devices shares fell 5.29 percent to $198.11 per share. In recent months, there has been widespread concern in the markets about the unjustified overvaluation of technology stocks and a possible investment bubble.
Dollar strengthens after Fed comments
The dollar, on the other hand, strengthened after statements by Christopher Waller, a member of the Board of Governors of the US Federal Reserve (Fed). He said that the central bank still has room to gradually lower interest rates in response to signs of a weakening labor market, which markets see as a signal of a possible change in monetary policy in the coming months.
The dollar index, which measures the value of the US currency against a basket of six major world currencies, rose 0.25 percent to 98.394 points around 10 p.m. CET. Nevertheless, the dollar remains under pressure – the index has lost more than nine percent since the beginning of the year and is heading for its steepest annual decline since 2017, reflecting investors’ expectations regarding the future development of interest rates in the US.
Source: Reuters
