U.S. Stocks End Wednesday in Red
(MENAFN) U.S. equity markets declined further on Wednesday as worries over inflated stock valuations dampened investor confidence.
The Dow Jones Industrial Average dropped 171.50 points, or 0.37%, closing at 46,121.28. The S&P 500 slid 18.95 points, or 0.28%, to end at 6,637.97. The Nasdaq Composite decreased by 75.62 points, or 0.33%, settling at 22,497.86.
Among the S&P 500’s 11 key sectors, seven finished in negative territory. Materials and real estate led the declines, falling 1.59% and 1.01%, respectively. Conversely, energy and utilities posted gains of 1.23% and 0.73%, standing out as the day’s top performers.
According to the Commerce Department’s Census Bureau, sales of new single-family homes in the U.S. increased in August, offering a glimmer of positive economic data.
Tech stocks showed a mixed picture. Oracle dropped 1.71% and Nvidia declined 0.82%, marking their second consecutive day of losses, while Amazon slipped 0.23% for its third straight decline.
In contrast, Alibaba’s U.S.-listed shares surged over 8% after the company announced an expansion of its AI infrastructure and model investments. Marvell Technology surged more than 7% to lead gains on the Nasdaq, with Intel rising 6.41%.
Investor caution intensified after a report by The Information revealed that OpenAI might opt to lease Nvidia chips instead of buying them outright, prompting further sell-offs in AI-related stocks.
Market participants also remained cautious ahead of Thursday’s U.S. jobless claims report and Friday’s release of the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures Price Index, while closely monitoring the ongoing risk of a government shutdown.
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