Stocks in the United States gained today, as the S&P 500 and Nasdaq indices managed to recover from an initial decline. Investors shifted money from some technology stocks associated with artificial intelligence (AI) into healthcare and consumer company shares. While pharmaceutical and healthcare company stocks gained, part of the technology sector continued to weaken due to concerns that high debt levels of AI-focused firms make them more vulnerable to potential interest rate hikes.
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Dow Jones Gained One Percent, Tech Sector Held Back by TSMC’s Cautious Outlook
The Dow Jones index rose by 556.21 points, or 1.1 percent, to 52,177.69 points. The broader Standard & Poor’s 500 index increased by 25.12 points, or 0.33 percent, to 7,744.06 points. The technology market index Nasdaq climbed by 20.16 points, or 0.08 percent, to 26,713.03 points.
Seven of the 11 sectors within the S&P 500 index rose, led by healthcare and raw materials producers. Among the gaining stocks were pharmaceutical company Eli Lilly, health insurer UnitedHealth, and retail chain Walmart. Conversely, shares of chipmakers Nvidia and Broadcom, as well as server producers Dell Technologies and Hewlett Packard Enterprise, weakened. Caution towards the technology sector was also fueled by a statement from Taiwanese chip manufacturer TSMC, which indicated a more cautious outlook for 2027 despite record quarterly results.
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US Producer Prices Accelerate, Dollar Nevertheless Falls Against Basket of Currencies
Today’s US statistics showed that producer prices in September grew the most in four and a half years due to increased costs for goods and services. This is further evidence that inflationary pressures are spreading beyond the energy sector. Retail sales rose more than expected due to higher gasoline prices, and the number of unemployment benefit claims slightly increased last week. This indicates resilient consumer demand and a stable labor market, Reuters reported.
The US dollar fell against a basket of currencies, moving away from the 18-month high it reached the previous day. Investors focused their attention on the sell-off of shares in some AI-linked technology companies and largely ignored US inflation and consumer spending data. The dollar index, which tracks the dollar’s performance against a basket of six major world currencies, fell by 0.5 percent to 102.03 points. The euro strengthened against the dollar by 0.6 percent to 1.1214 USD. The dollar weakened against the yen by 0.1 percent to 158.11 JPY. The euro rose against the yen by 0.5 percent to 177.30 JPY.
Read more: FX Junction
Source: ČTK
