Wall Street Mixed as Tech Stocks Swing on Individual Issues

Major U.S. stock indices showed mixed movements.

While the Dow Jones Industrial Average continued its record-breaking streak, the Nasdaq dropped by over 0.8%, and the S&P 500 edged down slightly.

By sector, communication services and energy fell by around 2%, whereas materials rose by over 2%.

Today's stock market saw contrasting fortunes driven by individual issues surrounding major tech stocks.

Elon Musk, CEO of SpaceX, announced that he would exclusively use Nvidia processors for building next-generation AI infrastructure, sending Nvidia surging more than 3% and strongly supporting the Dow's rise.

On the other hand, competitor AMD plunged over 7% as it failed to meet heightened expectations despite beating market forecasts for earnings. Alphabet also fell more than 4% amid concerns over a leadership vacuum following an AI division reorganization and the departure of key executives.

SpaceX plummeted by over 13%.

Although revenue increased, confirmation that massive costs were poured into expanding AI facilities sparked selling pressure over concerns that excessive investment burdens could weigh on corporate profitability.

However, hopes for a easing of Middle East risks prevented a sharp decline.

Relief flowed into the market on news that negotiations to reopen the Strait of Hormuz are making progress.

Signals of an economic slowdown were captured in the labor market.

The expansion of private-sector employment for July fell short of expectations, indicating a slowdown in job growth.

SanDisk, which reported earnings after the market close, saw its shares decline in after-hours trading as its guidance for the next quarter failed to meet expectations, despite its quarterly results beating forecasts.
※ Please note: This article was translated by AI and may contain errors.