Global stocks were mixed after Nvidia fell again as AI mania subsided

HONG KONG (AP) — Global stocks were mixed Tuesday after another Wall Street heavyweight fell Nvidia US indices remained mixed on Monday, even as the majority of stocks rose.

Dow Jones Industrial Average futures were little changed, while S&P 500 futures fell less than 0.1%.

European markets opened lower, with the French CAC 40 index falling by 0.7% to 7,652.41 points, the German DAX index falling by 1.1% to 18,117.45 points, while the British Financial Times 100 index fell by 0.1% to 8,276.46 points.

Japan’s Nikkei 225 rose 1% to 39,173.15 after data from the Bank of Japan on Tuesday showed that the services producer price index in May rose 2.5% compared with the same period last year, a slowdown from the 2.7% increase seen in April.

The Japanese yen remains the focus of attention, with the USD/JPY exchange rate still trading near its weakest level in almost 34 years. The yen rose to 159.45 against the dollar in Tuesday trading. The dollar closed at 159.59 yen on Monday.

Hong Kong’s Hang Seng regained most of its losses during the day to close 0.3% higher at 18,072.90 and the Shanghai Composite Index fell 0.4% to 2,950.00.

Australia’s S&P/ASX 200 index rose 1.4% to 7,838.80 points. In South Korea, the KOSPI index rose 0.4% to 2,774.39.

Elsewhere, Taiwan’s Taiex rose 0.3%, while Bangkok’s SET advanced 0.1%.

On Monday, the S&P 500 fell 0.3% to 5,447.87. A decline in shares of Nvidia and other winners of the AI ​​boom on Wall Street sent the Nasdaq Composite down 1.1% to 17,496.82, while the Dow Jones Industrial Average rose 0.7% to 39,411.21.

Shares of oil and gas companies were among the strongest stocks in the market, with seven out of every 10 stocks in the Standard & Poor’s 500 index rising. Exxon Mobil rose 3%, and SLB Oilfield Services gained 4%, with oil prices remaining near the highest. levels since April.

But declines in a few notable stocks offset all of those gains, highlighting Nvidia’s 6.7% decline more clearly. It was the third straight decline for the chip company, which has risen 1,000% since the fall of 2022.

Almost insatiable demand For Nvidia’s chips Artificial intelligence applications He was Big reason As for the US stock market, it has been at a record high recently, even as the economy grows Slows down under weight From rising interest rates. But the AI ​​boom has been so feverish that it has raised concerns about the possibility of a stock market bubble and sky-high expectations among investors.

Nvidia shares have tumbled since it briefly overtook Microsoft as Wall Street’s most valuable last week, falling nearly 13% in just three days. Since Nvidia has become so massive in volume, its stock movements have led to a negative impact Carrying excess weight On the S&P 500 and other indices. It was the heaviest weight yet on the S&P 500 on Monday.

In the bond market, Treasury yields fell slightly. The yield on the 10-year Treasury note fell to 4.23% from 4.26% late Friday.

It has mostly fallen since hitting 4.70% in late April, easing pressure on the stock market. Yields fell on hopes that inflation would slow enough to convince the Fed that it would Lowering the key interest rate Later this year.

The Fed has kept the federal funds rate at the highest level in more than 20 years, hoping to throttle the economy enough to get enough money out. Economic inflation under control.

In other trading Tuesday, the price of U.S. crude oil fell 20 cents to $81.43 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude lost 12 cents to $85.03 a barrel.

The euro was unchanged at $1.0732.

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