1 hr ago
Nasdaq Sets Record High as Dow Lags Amid AI Concerns
U.S. stock markets had a mixed day on Tuesday, September 22.
Technology companies were popular with investors, helping the Nasdaq reach a new record.
The Dow went down because financial companies performed poorly.
Some analysts worried that artificial intelligence could reduce the fees and profits of brokers.
Shopify rose sharply after partnering with Meta on a Muse AI product.
Oil prices also fell below $100 per barrel.
Reports said Saudi Arabia could increase pipeline operations and Iran might reopen the Strait of Hormuz, but Iranian officials gave conflicting accounts.
Investors are also watching talks between Xi Jinping and Donald Trump about trade, tariffs, and AI.
The Nasdaq Composite rose 0.5% to another record high, while the Nasdaq 100 reached its own record for a fifth consecutive session.
The Dow Jones fell nearly 200 points, and the S&P 500 finished roughly flat as financial stocks underperformed.
Shopify jumped more than 7% after announcing a partnership with Meta involving its Muse AI product.
Allstate and Charles Schwab dropped 5.5% and 6.1%, respectively, amid concerns that AI could reduce brokerage income.
Brent crude fell below $100 a barrel, while reports about Iran and the Strait of Hormuz produced conflicting signals.
- Who
- U.S. stock-market investors, technology companies, financial firms, Saudi Arabia, Iran, Xi Jinping, and Donald Trump.
- What
- Wall Street indexes had a mixed session, with the Nasdaq reaching records while the Dow declined.
- Where
- Wall Street and global oil markets.
- When
- Tuesday, September 22.
- Why
- Technology buying supported the Nasdaq, while concerns about AI's effect on financial and consumer-service businesses pressured other stocks; lower oil prices also influenced trading.
Supportive Market View
Cautious Market View
Strength of the rally
Supportive Market View
Continued buying in technology stocks pushed the Nasdaq Composite and Nasdaq 100 to record highs.
Cautious Market View
Jonathan Krinsky of BTIG said market breadth remained weak, with more S&P 500 stocks reaching 52-week lows than highs.
Year-end outlook
Supportive Market View
The record-setting Nasdaq performance and continued technology demand indicate that some investors remain willing to buy stocks.
Cautious Market View
Bowersock Capital Partners cut its year-end S&P 500 target to 7,800, saying much of the year's gains had already occurred and rising rates could weigh on stocks.
Oil and Strait of Hormuz reports
Supportive Market View
Reports said Saudi Arabia would soon begin operations at its East-West pipeline and that Iran might reopen the Strait of Hormuz within seven days if U.S. military pressure eased.
Cautious Market View
The Iran report was disputed: one Iranian official was quoted by Reuters, while another Iranian official denied it to MS NOW.
Key facts
- Nasdaq Composite
- Rose 0.5% to another record high.
- Nasdaq 100
- Rose for a fifth consecutive day and reached a record high.
- Dow Jones
- Fell by nearly 200 points.
- S&P 500
- Closed roughly flat.
- Top-performing stock
- Shopify gained more than 7% after its Meta partnership involving Muse AI.
- Financial-stock declines
- Allstate fell 5.5%, while Charles Schwab dropped 6.1%.
- Oil
- Brent crude fell below $100 a barrel.
Sources
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