Stocks Rebound From Lows as Oil Slips, Nvidia Weighs on Chipmakers – US Market Wrap
US equities partially recovered from session lows after oil reversed earlier gains on signs of progress in US-Iran nuclear negotiations. Semiconductor shares dragged on major indexes as Nvidia’s earnings failed to reassure investors focused on the outlook for artificial intelligence. Bonds advanced.
The S&P 500 finished 0.5% lower, though roughly 350 of its components rose, underscoring uneven performance beneath the surface. The Nasdaq 100 dropped 1.2%. Nvidia slid 5.5% despite issuing an upbeat forecast, pulling down most stocks in a key semiconductor index. Salesforce provided some support to sentiment with a strong long-term revenue outlook and a sizable share buyback, easing concerns about AI-related disruption in software.
The market’s divided reaction highlights ongoing uncertainty around AI. After leading gains for much of the past few years, Nvidia and other AI-linked names have faced renewed scrutiny over the scale and sustainability of spending, while investors rotate away from companies viewed as vulnerable to technological displacement.
In fixed income, the yield on 10-year Treasuries fell four basis points to 4.01%. The dollar traded little changed.
Oil declined 0.3% to settle at $65.21 a barrel after Oman, acting as mediator, said the US and Iran made significant progress in Switzerland and will continue nuclear talks next week.
