United States major benchmark averages closed mixed on Wednesday (Thursday AEST), with ongoing weakness in technology stocks weighing on the broader market, while lower oil prices lifted travel-related shares and helped the Dow Jones Industrial Average finish higher.
The Dow Jones Industrial Average gained 182.1 points, or 0.4%, to close at 51,848.9. The S&P 500 slipped 7.2 points, or 0.1%, to 7,358.2, while the Nasdaq Composite fell 110.4 points, or 0.4%, to 25,476.6.
Technology stocks remained under pressure as investors continued to question lofty valuations across the sector. Attention centred on semiconductor manufacturer Micron Technology, which released earnings after the closing bell.
The company’s shares rose 13.9% in extended trading after reporting quarterly revenue and issuing a fourth-quarter forecast that exceeded Wall Street expectations.
Chip designer Cerebras Systems plunged 19.6% after forecasting full-year profit margins below its first-quarter level in its first earnings report since listing on the stock market.
The stock also came under pressure after OpenAI announced its own in-house inference chip, known as Jalapeño.
Major technology companies also declined, with NVIDIA down 0.5%, Oracle losing 4.6%, Microsoft falling 2.3%, and Meta Platforms finishing 0.8% lower.
Energy markets also remained in focus. Oil prices fell to their lowest levels since the beginning of the Iran conflict amid expectations that tanker traffic through the Strait of Hormuz would continue to increase.
U.S. President Donald Trump said Iran had informed Washington that it would not seek to impose tolls on vessels using the strategic waterway.
The decline in crude prices supported travel and leisure companies, with Expedia Group rising 7.0% and Booking Holdings gaining 7.3%.
Housing-related stocks also recorded strong gains after Trump cancelled a planned signing ceremony for bipartisan legislation designed to accelerate the supply of affordable housing.
Among homebuilders, Hovnanian Enterprises jumped 11.3%, PulteGroup advanced 7.2%, and Toll Brothers climbed 6.7%.
Elsewhere, Hertz Global Holdings slumped 40.7% after the car rental company said it expected second-quarter adjusted earnings before interest, tax, depreciation and amortisation to be near the lower end of its guidance range.
The company also announced plans to raise capital through a proposed US$100 million common stock offering.
Market participants continued to reassess the outlook for U.S. monetary policy. According to the CME Group FedWatch Tool, traders increased their expectations that the Federal Reserve could deliver a second interest rate increase before the end of December.
Investors are now awaiting the release of the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred measure of inflation, due on Thursday. The data is expected to provide further clues on the direction of interest rates in the months ahead.
On the bond markets, U.S. Treasury yields moved lower. The yield on the benchmark 10-year Treasury note fell 2.2 basis points to 4.398%, while the two-year Treasury yield declined 1.2 basis points to 4.15%.
