The U.S. markets ended lower on Tuesday as software stocks came under pressure from renewed AI disruption fears following OpenAI’s latest model launch. Rising oil prices, Middle East tensions and bets on a September Fed rate hike also weighed on investor sentiment. Traders also remained on sidelines ahead of the release of the U.S. Producer Price Index (PPI) on Thursday and the Consumer Price Index (CPI) on Friday. The reports on consumer and producer price inflation could have a significant impact on the outlook for interest rates ahead of the Federal Reserve’s next monetary policy meeting later this month.
On the sectoral front, pharmaceutical stocks showed significant move to the downside, dragging the NYSE Arca Pharmaceutical Index down by 3.2 percent. An increase by treasury yields also weighed on interest rate-sensitive housing stock, as reflected by the 2.8 percent slump by the Philadelphia Housing Sector Index. Healthcare, airline and biotechnology stocks also weakened, while networking, oil and semiconductor stocks showed strong moves to the upside.
Dow Jones Industrial Average declined by 628.18 points or 1.18 percent to 52,786.07, S&P 500 decreased by 45.08 points or 0.58 percent to 7,673.52 and Nasdaq dropped by 85.57 points or 0.32 percent to 26,421.41.
About The Author
