By Medha Singh and Twesha Dikshit<\/p>\n
June 1 (Reuters) – Wall Street’s main indexes hovered near record highs on Monday as investors weighed Nvidia’s latest artificial intelligence push against mounting skepticism that a deal to end the three-month-old U.S.-Iran war could be \u200creached soon.<\/p>\n
Nvidia rose 4% after unveiling a new chip that puts AI capabilities directly into laptops and desktop computers.<\/p>\n
The chip \u200cis the result of a three-year partnership with Microsoft to “reinvent the PC” for the AI era, Nvidia CEO Jensen Huang said. Microsoft shares added 2.5%.<\/p>\n
The S&P 500 tech index \u200bgained 1.5%.<\/p>\n
The reaction in semiconductor stocks was mixed. Qualcomm tumbled 6%, while PC chipmakers AMD and Intel fell 3.1% and 4.4%, respectively. Micron rose 5.7% to $1,022, topping the $1,000 mark for the first time. Its shares have soared nearly 90% in May.<\/p>\n
“Nvidia might expand the market, but most of its gains will come at the expense of the incumbents,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.<\/p>\n
Memory makers such as Micron stood to benefit \u200cbecause their chips complement the processors that go \u2060into new computers, and an AI-driven refresh cycle could lift the premium end of the PC market, he said.<\/p>\n
The mood was somber, with oil prices climbing 5% after Tasnim news agency reported that Iran’s negotiating team was \u2060stopping talks with the U.S. over attacks on Lebanon.<\/p>\n
Nine of the 11 main S&P 500 sectors were in the red, with consumer discretionary leading declines with a 2% fall.<\/p>\n
At 09:40 a.m. the Dow Jones Industrial Average lost 177.00 points, or 0.35%, to 50,855.46, the S&P 500 rose 1.82 points, or 0.02%, \u200bto 7,581.88, \u200band the Nasdaq Composite gained 39.52 points, or 0.15%, to 27,012.14.<\/p>\n
Software stocks also \u200brebounded from the heavy selling earlier this year on \u200cAI disruption fears. ServiceNow and IBM rose 10.7% and 6%, respectively. The software services index advanced 3% after erasing all losses from January-end.<\/p>\n
Cadence Design Systems added 3% after launching an Nvidia-powered AI agent for chip design.<\/p>\n
Wall Street’s main indexes ended May at record highs, buoyed by hopes of an eventual end to the war and blowout first-quarter earnings. Optimism around AI has helped boost U.S. equities, but concerns over the economic impact from the hostilities remain.<\/p>\n
Investors will turn to Friday’s jobs report ahead of Kevin Warsh’s debut policy meeting as chairman of the U.S. Federal \u200cReserve this month, amid fears of rising inflation linked to the Iran war that \u200bcould upend the stock market rally.<\/p>\n
“Passing the baton from one chair to the next \u200bisn’t always a smooth process. If the Strait of Hormuz \u200bdoesn’t more fully open before the next Fed meeting, it’s almost certain that the Fed’s policy statement will \u200cbecome more hawkish,” Jacobsen said.<\/p>\n
Traders have priced in a near \u200b70% chance of a quarter-point rate \u200bhike before the end of the year.<\/p>\n
Broadcom earnings on Wednesday will also be in focus after a strong results forecast last week from AI-server maker Dell.<\/p>\n
Among other company movers, Taylor Morrison Home Corp jumped 22% after Berkshire Hathaway agreed to buy the homebuilder \u200bfor $6.8 billion in cash.<\/p>\n
Declining issues outnumbered advancers by \u200ca 1.65-to-1 ratio on the NYSE and by a 1.45-to-1 ratio on the Nasdaq.<\/p>\n
The S&P 500 posted 17 new 52-week \u200bhighs and 10 new lows, while the Nasdaq Composite recorded 47 new highs and 29 new lows.<\/p>\n
(Reporting by Medha Singh \u200band Twesha Dikshit in Bengaluru; Editing by Shinjini Ganguli and Pooja Desai)<\/p>\n","protected":false},"excerpt":{"rendered":"By Medha Singh and Twesha Dikshit June 1 (Reuters) – Wall Street’s main indexes hovered near record highs…\n","protected":false},"author":2,"featured_media":678072,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,1281,121,4321,113957,74,918],"class_list":["post-678071","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-microsoft","tag-nasdaq-composite","tag-nvidia","tag-record-highs","tag-technology","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/678071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=678071"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/678071\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/678072"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=678071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=678071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=678071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}