3 weeks ago
Dow Jones Posts Record Close; Tech Stocks Drag Peers Lower
On Wednesday, America's stock market had a very mixed day.
The Dow Jones index of big companies went up and set a new record high, even though it dropped 400 points from its best level.
Other indexes, like the Nasdaq, went down a little.
Tech stocks acted differently: Nvidia went up, but AMD went down.
Nvidia rose because Elon Musk said his company SpaceX will use only Nvidia chips to build artificial intelligence.
AMD fell because of that news and its own weak sales outlook.
Google's parent company, Alphabet, fell because top scientist Jeff Dean announced he is leaving to start his own company.
SpaceX, the biggest new stock in history, fell a lot because its spending is still high and its lock-up period is ending.
There is also uncertainty about what the United States might do with Iran.
Everyone is waiting for Friday's jobs report to learn more about the economy.
The Dow Jones ended 250 points higher at a record closing high despite falling 400 points from the day's peak, gaining for a fifth straight session.
The Nasdaq Composite and Nasdaq 100 each fell 0.8%, while the S&P 500 closed below the flat line; both snapped a four-day losing streak.
Nvidia rose over 3% after Elon Musk said SpaceX will exclusively use Nvidia chips for AI infrastructure, while rival AMD fell 7%.
Alphabet fell 4% after Chief Scientist Jeff Dean announced he is leaving after 27 years to start his own company.
SpaceX shares fell 13%, down 20% from their $135 IPO price, and over $100 billion in shares became eligible to trade as its lock-in period ended.
- Who
- Investors on Wall Street; key figures include Elon Musk, Jeff Dean and Donald Trump, and companies including Nvidia, AMD, Alphabet and SpaceX.
- What
- A mixed Wall Street session in which the Dow Jones posted a record closing high while tech-heavy Nasdaq indexes fell and SpaceX shares dropped sharply.
- Where
- Wall Street in the US; related geopolitical developments involve Iran, Oman and the Strait of Hormuz, with Trump speaking in Los Angeles.
- When
- Wednesday, August 5.
- Why
- Driven by SpaceX's plan to use Nvidia chips for AI infrastructure, Alphabet's leadership change, weaker-than-expected private payrolls data, and uncertainty over the US-Iran situation.
Key facts
- Dow Jones
- Record closing high, up 250 points
- Nasdaq Composite & Nasdaq 100
- Fell 0.8% each
- Nvidia
- Gained over 3%
- AMD
- Fell 7%
- Alphabet
- Fell 4% after Jeff Dean's departure announcement
- SpaceX
- Fell 13%; 20% below $135 IPO price
- July private payrolls
- 44,000 jobs added, lowest this year
- Brent Crude / WTI
- Around $80 / $75 per barrel
Quotes
Donald Trump
United States President
“"We'll know in 48 hours on Iran"”
CNBC TV 18
Sources
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