Stock Market Update: Dow, S&P 500, and Nasdaq Hold Steady as Investors Eye Big Tech’s AI Spending
US stock markets saw a mixed day as concerns over Big Tech’s AI investments and ongoing economic policies stirred investor sentiment. The Dow Jones, S&P 500, and Nasdaq futures inched up slightly, but the overall market remained cautious.
Tech Stocks Face Volatility
Alphabet’s shares took a hit on Tuesday after its earnings report revealed a decline in cloud revenue. Investors reacted nervously, fearing escalating AI-related costs. However, the stock remained unchanged in after-hours trading. Meanwhile, Nvidia reaped the benefits of Big Tech’s commitment to AI investment, surging 6% during the session before stabilizing post-market.
All eyes are now on Amazon, which is set to release its earnings after Thursday’s market close. Investors are particularly keen on how its cloud business performs, given Alphabet’s recent setback.
Tariffs Shake US Businesses
Beyond tech, President Donald Trump’s tariff policies rattled multiple industries. Ford, despite surpassing earnings expectations, saw its stock slip in after-hours trading. The company’s CFO warned that the new tariffs could significantly impact the auto sector.
Fast-food giant Chipotle also acknowledged the strain, stating it would absorb the added costs, which would reduce its profits by 10%.
Federal Reserve Takes a Cautious Approach
With inflation fears on the rise due to tariffs, Federal Reserve officials maintained their “wait and see” stance on interest rate adjustments. Treasury Secretary Scott Bessant emphasized that the administration’s priority is lowering 10-year Treasury yields rather than immediate interest rate cuts.
Gold Hits Record Highs
Amid the market uncertainty, gold continued its impressive run, reaching a record price for the fifth consecutive day. Futures traded at $2,885 per ounce, nearing the day’s peak of $2,905. As global tensions persist, both banks and investors are flocking to the precious metal as a safe-haven asset.
