Major United States averages fell for a second consecutive session on Wednesday (Thursday AEST), as selling pressure on artificial intelligence heavyweights continued and investors turned cautious ahead of key economic data and political risks.
The Dow Jones Industrial Average declined 171.5 points, or 0.4%, to close at 46,121.3. The S&P 500 dropped 19 points, or 0.3%, to 6,638.0, while the Nasdaq Composite slipped 75.6 points, also 0.3%, to finish at 22,497.9.
Nvidia extended its recent losses, easing 0.8%, as scepticism mounted about the sustainability of the AI boom. The company earlier this week unveiled a US$100 billion partnership with OpenAI, but concerns about the sector’s “circular” growth narrative weighed on sentiment.
Oracle also fell for a second day, down 1.7%.
The Nasdaq’s decline was pared late in the session after Intel jumped 6.4% following a Bloomberg report that Apple is considering taking a stake in the chipmaker.
The news came just days after Nvidia announced a $5 billion investment in Intel.
Meanwhile, Micron Technology slid 2.8% after posting its latest quarterly results.
Profit-taking may also be contributing to the pullback after Federal Reserve Chair Jerome Powell warned on Tuesday about elevated asset valuations.
Investors are now looking ahead to weekly jobless claims data and the Federal Reserve’s preferred inflation gauge, the PCE index, set for release later in the week.
Political tensions in Washington are also weighing on sentiment. President Donald Trump cancelled a meeting this week with Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries that could have helped avoid a government shutdown before the 30 September deadline.
On the bond markets, yields edged higher. The 10-year Treasury rose 1.1% to 4.149%, while the 2-year yield added 0.5% to 3.606%.
