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Most of Wall Street rose, even as stocks of computer chipmakers continued to tumble worldwide. Oil prices, meanwhile, eased further from the two-month high they hit last week.<\/p>\n
The S&P 500 added 0.2 per cent, but the modest move masked big swings underneath the surface. The Dow Jones Industrial Average jumped 537 points, or 1 per cent, while the Nasdaq composite slipped 0.2 per cent after briefly dropping 9.3 per cent below its record set last month.<\/p>\n
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The slump in Wall Street\u2019s AI stocks picked up pace on Tuesday.AP<\/p>\n
The Australian sharemarket is set to rise, with futures at 6.14am AEST pointing to a jump of 76 points, or 0.9 per cent, at the open. The ASX added 0.6 per cent<\/a> on Tuesday. The Australian dollar was trading at US69.77\u00a2. Inflation data is due out this morning.<\/p>\n On Wall Street, Apple became just the second company ever to achieve a $US5 trillion ($7.2 trillion) market valuation.<\/p>\n Related Article The iPhone maker\u2019s shares rose as much as 1.8 per cent to $US342.89 early in the session, pushing the company\u2019s market capitalisation to above $US5 trillion for the first time before falling back below the mark as shares eased before closing at $US340.80. Nvidia closed at a record $US5.7 trillion on May 14, but it has since lost roughly $US1 trillion in valuation. Apple is now the biggest company in the S&P 500 Index.<\/p>\n The majority of the US market rose after more companies delivered stronger profits for the spring than analysts expected. Coca-Cola climbed 5 per cent after its revenue rose 7 per cent despite what CEO Henrique Braun called \u201ca dynamic consumer landscape.\u201d<\/p>\n Sherwin-Williams rallied 8.3 per cent, and Illinois Tool Works rose 3.6 per cent after both likewise reported stronger earnings for the latest quarter than analysts expected. Stock prices generally follow the trend of corporate profits over the long term, and expectations are high for this most recent round of reports with the US stock market still near its all-time high.<\/p>\n Such expectations are weighing particularly heavily on stocks of chipmakers and other companies that have been huge winners from the boom in artificial-intelligence technology.<\/p>\n Micron Technology\u2019s stock came into the day having more than tripled for the year following gangbuster growth, for example. During the three months through May 28, its revenue more than quadrupled from a year earlier.<\/p>\n But worries are rising about whether such growth is sustainable. Big spenders on computer memory could pull back on investments if AI does not produce as much profit or productivity as promised. Lower-cost AI models from China could also mean less demand for memory and computing power than earlier expected.<\/p>\n Micron dropped 8.9 per cent and was the heaviest weight on the S&P 500. Others also helping to keep the market in check were Advanced Micro Devices, down 8.1 per cent, and Applied Materials, down 7.8 per cent.<\/p>\n All told, the S&P 500 rose 15.60 points to 7,428.78. The Dow Jones Industrial Average jumped 537.24 to 52,747.32, and the Nasdaq composite fell 55.17 to 24,876.91.<\/p>\n The losses for chip stocks were even worse earlier in the day in other markets worldwide.<\/p>\n Sharp drops for SK Hynix and Samsung Electronics dragged South Korea\u2019s Kospi index down 10.8 per cent. The market\u2019s losses were so big that trading was temporarily halted at times in Seoul.<\/p>\n \u201cWe believe the market was likely spooked by the progress of China\u2019s chipmaking equipment capabilities, and was worried that this progress would threaten the competitive position of global chipmaking and chip equipment leaders,\u201d said equity analyst Jing Jie Yu of Morningstar.<\/p>\n \u201cThat said, we believe the sell-off today is largely a knee-jerk reaction and overdone,\u201d he said. The dominant position of global chipmaking leaders is unlikely to be threatened meaningfully, he said.<\/p>\n Several huge spenders on AI chips and data centres are scheduled to report their latest quarterly results this week, which could offer updates on how much they\u2019re planning to invest. Meta Platforms and Microsoft are reporting on Thursday (AEST), while Amazon is due the following day.<\/p>\n Because AI superstar stocks have grown so big, their movements carry more weight on the S&P 500 and other indexes than many other companies. But the broad US market could hold up despite their swings if other, less-loved areas are able to keep rising. It\u2019s a rotation that some strategists have suggested could be healthy for the overall stock market.<\/p>\n In the oil market, the price for a barrel of Brent crude to be delivered in October fell 4.4 per cent to settle at $US82.08.<\/p>\n It\u2019s been falling since late last week, when the price for a barrel to be delivered in September briefly shot as high as $US102.<\/p>\n Related Article Pushing up on prices have been worries that worsening fighting in the Middle East could slow the global flow of oil. On the other side, though, are hopes that the United States and Iran could still negotiate something to allow oil tankers to use the Strait of Hormuz to move crude.<\/p>\n Lower oil prices helped to ease Treasury yields in the bond market. The yield on the 10-year Treasury fell to 4.60 per cent from 4.65 per cent.<\/p>\n A weaker-than-expected reading on confidence among US consumers also weighed on yields. Fewer consumers are saying they feel good about current business conditions, according to the latest survey released by the Conference Board.<\/p>\n The drop in oil prices helped push traders to trim their bets that the Federal Reserve could announce a hike to interest rates following its latest meeting on Wednesday. They\u2019re forecasting a 31.5 per cent probability, down from more than 36 per cent a day before, according to data from CME Group.<\/p>\n Higher rates could keep a lid on inflation, but they would also slow the economy by making it more expensive for US households and businesses to borrow. Long-term mortgage rates have already hit their highest level in nearly a year, chilling the housing industry.<\/p>\n AP<\/p>\n The Market Recap newsletter is a wrap of the day\u2019s trading. 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