Nvidia and Broadcom lift US market as Tech stocks swing on AI costs
Nvidia, the chip designer, rose 2.3% on Tuesday.
The short version
- The S&P 500 gained 0.4% to 7,568.92.
- Apple fell 1.9% as memory chip costs climbed.
- Check your retirement accounts and index funds this week.
- When Tech stocks swing, your 401(k) moves with them.
A rebound for some influential Big Tech stocks lifted the U.S. market on Tuesday despite a drop for Apple and mixed trading elsewhere on Wall Street. The S&P 500 rose 0.4%, even though most of the stocks within the index fell. The Dow Jones Industrial Average dropped 197 points, or 0.4%, and the Nasdaq composite climbed 0.8%.
The stock market has been shaky recently as technology and artificial-intelligence stocks swing on worries their prices shot too high in the frenzy around AI. Nvidia, the chip designer, rose 2.3% and was the strongest force pushing upward on the S&P 500.
Close behind was another chip company, Broadcom, which rose 3.1%. Also boosting the market were several companies that are spending heavily on AI. Microsoft, Amazon, and Meta Platforms, which owns Facebook and WhatsApp, all rose more than 2%.
Apple, the maker of iPhones and Mac computers, fell 1.9% because memory chips for computers have become more expensive due to the demand created by the rush to build AI data centers. Those higher costs are hitting Apple, which said it expects to make less profit from each $1 of its revenue during the final three months of this year.
Palantir Technologies, the software company, fell 1.6% even though it reported a better profit than expected. Dupont rallied 8.6% for one of the biggest gains in the S&P 500. Revvity, the life sciences company, rose 7.8% after topping analysts' expectations, according to the Boston Herald.
Check your retirement accounts and index funds this week to see how the Tech swings hit your balance.
Photo: Coolcaesar, CC BY-SA 4.0, via Wikimedia Commons
