S&P 500 edges lower as tech and AI stocks decline; Dow rises in value-growth divergence
A reheated bagel, served cold.
Summary
The S&P 500 fell 0.26% as technology and AI stocks faced selling pressure, while the Dow Jones rose 0.17%, showing divergence between growth and value sectors. Broadcom declined on weak outlook and chip valuation concerns, Ciena dropped after a convertible bond announcement, and Nvidia saw mild pressure. Investors are cautious ahead of U.S. May inflation data, with volatile energy prices from Middle East tensions and a resilient labor market influencing Fed policy expectations. Market direction hinges on whether CPI data comes in cooler or hotter than expected.
Key quotes
· 4 pulledThe S&P 500 closed down 0.26% as selling pressure returned to technology and AI-related stocks.
Advancing stocks slightly outnumbered decliners on both the NYSE and Nasdaq, but large-cap technology selling still dragged the index lower due to concentration in a small group of leading stocks.
Investors grew more cautious ahead of U.S. May inflation data as volatile energy prices tied to Middle East tensions could raise CPI.
Near term, a cooler CPI could ease pressure from bond yields and policy expectations, while a hotter CPI could worsen them.
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