3 weeks ago
Stocks open mixed as tech drags Nasdaq, Dow near record
Stock markets are places where people buy and sell small pieces of companies, called shares.
On Thursday, US stock markets opened with mixed results, meaning some went up and others went down.
The Dow Jones average rose a little, the S&P 500 barely moved, and the Nasdaq went down because technology companies were struggling.
Investors were paying close attention to company earnings reports, especially from businesses connected to artificial intelligence, or AI.
They want to know if spending lots of money on AI will bring bigger profits later.
SpaceX, a rocket company, had shares near their lowest prices because a rule that stopped insiders from selling was ending.
Nvidia, a company that makes computer chips, saw its stock go up because SpaceX said it would use only Nvidia's processors.
Oil prices stayed near $80 a barrel after Iran said it agreed with Oman on a temporary shipping route through the Strait of Hormuz.
Also, fewer people than expected applied for unemployment benefits—199,000 people, compared with the 205,000 that experts predicted.
US stocks opened mixed on Thursday, with the Dow Jones Industrial Average up 0.3%, the S&P 500 little changed, and the Nasdaq Composite down 0.5%.
Technology stocks weighed on the Nasdaq as investors assessed AI-linked earnings and whether heavy AI infrastructure spending will translate into stronger profits.
SpaceX shares stayed near all-time lows ahead of its lock-up period expiry on Thursday, while Nvidia gained more than 3% on Wednesday after SpaceX said it would use its chips exclusively.
Oil prices steadied near $80 a barrel after Iran said it reached an agreement with Oman for a temporary shipping route through the Strait of Hormuz.
Initial jobless claims rose slightly to 199,000 in the week ended August 1, below economists' expectation of 205,000.
- Who
- Investors, technology companies including Nvidia and SpaceX, Iran and Oman (represented by Iranian Foreign Ministry spokesman Esmail Baghaei), and economists tracking US labour data.
- What
- US stocks opened mixed, with technology stocks dragging the Nasdaq lower while the Dow traded near a record, as markets weighed AI-linked earnings, jobless claims data, and an Iran-Oman shipping route agreement affecting oil.
- Where
- US stock markets; the Strait of Hormuz and West Asia were in focus for oil prices.
- When
- Thursday; jobless claims data covers the week ended August 1; Nvidia's share gain occurred on Wednesday.
- Why
- Investors reacted to AI-related earnings questions, fresh labour market data, the SpaceX lock-up expiry, and the potential Iran-Oman shipping route arrangement.
AI Spending Supporters
AI Profit Skeptics
Will AI infrastructure spending pay off?
AI Spending Supporters
Companies tied to the AI boom have benefited from heavy spending on AI infrastructure, which supporters expect to translate into stronger profits.
AI Profit Skeptics
Investors continue to question whether heavy AI infrastructure spending will actually translate into stronger profits, leading to sharp reactions in AI-linked stocks.
Key facts
- Market open
- Dow +0.3%, S&P 500 little changed, Nasdaq -0.5%
- Initial jobless claims
- 199,000 (week ended August 1); forecast 205,000
- Prior week's jobless claims
- Revised to 198,000
- Oil price
- Near $80 per barrel
- Nvidia
- Gained more than 3% on Wednesday after SpaceX chose its processors exclusively
- SpaceX
- Shares near all-time lows ahead of lock-up expiry
- Geopolitics
- Iran and Oman agreed on a temporary shipping route through the Strait of Hormuz
Quotes
Esmail Baghaei
Spokesman for Iran’s Foreign Ministry
“if certain third parties do not obstruct this process.”
CNBC TV 18
Sources
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