Wall Street’s gains from record highs continued on Tuesday, but the S&P 500 fell for a third consecutive day due to concerns over artificial intelligence technology. Nvidia, which powers most of the move into AI, dropped 3.5%, while Palantir Technologies plummeted 9.4% for its largest loss in three months.
Critics argue that stock prices have risen too quickly and become overly expensive since hitting a bottom in April. Companies are responding by reporting better-than-expected earnings and revenue to make their stocks look more attractive. Palo Alto Networks rose 3.1% after meeting analyst expectations, while Home Depot’s gain of 3.2% helped the Dow Jones Industrial Average perform better than other indexes.
The focus shifts to Friday when Federal Reserve Chairman Jerome Powell is set to deliver a highly anticipated speech in Jackson Hole, Wyoming. Traders expect the Fed to cut interest rates soon, but strategists warn that Powell may not sound as inclined to make changes. The yield on the 10-year Treasury fell to 4.30% after Tuesday’s trading.
In other markets, indexes rose in Europe after falling modestly in Asia. Intel climbed 7% after the Trump administration confirmed plans to take an ownership stake in the chip maker.
Source: https://apnews.com/article/stocks-markets-intel-trump-rates-0a2f07987dabb74a8da0927023a92610