Title: U.S. Stock Market Under Pressure Again as Technology Stocks Decline
The optimism that followed a rebound in technology giants was short-lived, as the U.S. stock market once again faced pressure due to the decline of technology stocks. Chip stocks and winners of the artificial intelligence (AI) boom experienced retreats, with notable companies like Oracle and Nvidia seeing fluctuations in their stock prices.
Oracle, which had initially surged after announcing strong earnings due to demand for AI servers, later saw a decline in its stock price. Nvidia also fell by nearly 4% during the session following a downgrade from Wells Fargo, which predicted a significant drop in stock price due to potential impact on deliveries and profits.
Tesla, on the other hand, hit a nearly ten-month low after a rating downgrade and price target cut by Wells Fargo. This led to a 5% decline in the stock price, further impacting new domestic car-making forces like NIO listed in the U.S.
Meanwhile, Chinese concept stocks continued to rise, with indexes outperforming the market for four consecutive trading days. Biotech company BeiGene and e-commerce platform Pinduoduo saw significant gains after positive news and analyst coverage.
As U.S. stock gains faltered, cryptocurrencies saw a resurgence, with Bitcoin reaching a new all-time high above $73,000. The rise in cryptocurrency prices was attributed to substantial inflows into Bitcoin spot ETFs listed in the U.S.
In other sectors, gold rebounded, and commodity prices, particularly copper, saw a rise. Geopolitical tensions and unexpected events in the oil industry supported a strong rebound in international crude oil prices.
Overall, the U.S. stock market closed with mixed results, with the Dow Jones managing to close higher while the S&P and Nasdaq fell back. Various factors such as bond yields, currency exchange rates, and sector-specific news influenced the market dynamics throughout the day.