The S&P 500 wobbles as the decline in oil is offset by AI fear – US Market Wrap

A selloff in chipmakers shook markets, offsetting a drop in oil prices, as pressure mounted on the biggest spenders in artificial intelligence to justify their expenditures.
While most S&P 500 stocks rose, the index remained relatively unchanged. The semiconductor industry index declined 2.2%. The cost of insuring Nvidia debt against default has risen amid a new round of AI transactions valued at more than $750 billion. ASML fell on news that a Chinese state-backed company is developing certain chipmaking devices, which could jeopardize its sales.
Brent crude settled at $88 after the US avoided striking Iran for the third day in a row. Bond yields fell as inflation fears eased ahead of the Federal Reserve’s announcement.
On the geopolitical front, Trump claimed the US and Iran were in diplomatic talks to settle their conflict, but warned that if negotiations failed, the two sides would resume warfare.
Separately, Iran and Oman are attempting to strike a deal to restore shipping via the Strait of Hormuz, according to sources familiar with the situation.