NEW YORK – The Nasdaq notched a record high close on Sept 22, lifted by Micron Technology and other AI-related stocks, while the S&P 500 hovered just below a record high as oil prices traded around US$100 per barrel.
Chip stocks added to recent gains while consumer-related software shares lost ground. Investors focused on the strong reception of Meta Platforms’ AI assistant, which launched this month and can send emails and complete transactions on behalf of a user.
The success of the AI assistant, called Muse, has fuelled gains for AI-related chip stocks in recent days. Yet, some worried it could compete with retailers, online brokerages and other consumer companies. Amazon on Sept 21 blocked the agent from shopping on its platform.
“There are a lot of tech stocks that are down today on Muse-related fears of one sort or another,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “People fear that Muse will be used to manage your insurance relationships, book your travel and search for stuff to buy.”
Ride-hailing apps Uber Technologies and Lyft lost ground, while Expedia and Charles Schwab also fell.
Memory chipmakers Micron and SanDisk both rallied.
Oil prices were choppy near US$100 a barrel, while the yield on the benchmark 10-year Treasury note hovered around 4.94 per cent after US President Donald Trump warned in a speech to the UN General Assembly that he could “annihilate the Islamic Republic” if no deal is reached to end the Middle East conflict.
Investors also awaited a US-China summit on Sept 23, with traders speculating the trade truce with Beijing could be extended and talks could touch on AI regulation.
“What people are looking for is at least the start of a conversation that maybe you can come up with some sort of global framework as opposed to fighting each other and having this race and so,” said Joe Saluzzi, head of equity market structure research at Themis Trading.
According to preliminary data, the S&P 500 lost 0.43 points, or 0.01 per cent, to end at 7,764.27 points, while the Nasdaq Composite gained 121.15 points, or 0.45 per cent, to 27,243.24.
The Dow Jones Industrial Average fell 184.94 points, or 0.36 per cent, to 51,863.89.
The S&P 500 was less than 1 per cent below its Aug 13 record high close.
Even as it trades near record highs, the S&P 500 is valued at just under 19 times expected earnings, its lowest valuation since 2023, according to LSEG data. AI-related heavyweights are responsible for much of the recent increase in earnings expectations.
JPMorgan Chase and Wells Fargo both lost ground.
Boston Federal Reserve President Susan Collins wrote she supported last week’s interest rate increase, citing inflation risks.
New York Fed President John Williams said the Fed’s framework for controlling short-term rates has been effective in supporting financial markets.
Traders see a 53 per cent chance the Fed will increase interest rates by at least 25 basis points in October, the CME Group’s FedWatch Tool showed. REUTERS
