US stocks waver as tech companies slip and oil prices continue falling
Coeur d'Alene Press | UPDATED 1 day, 11 hours AGO
NEW YORK (AP) — Stocks wavered in afternoon trading on Wall Street Wednesday as big technology stocks slipped and weighed on the broader market.
The S&P 500 fell 0.3%. The Dow Jones Industrial Average rose 235 points, or 0.5%, as of 3:19 p.m. Eastern. The Nasdaq composite fell 0.8%.
Technology stocks started the day higher, helping to support the market's broader gains amid easing pressure from falling bond yields and lower oil prices. But the influential tech sector is now losing ground for a third consecutive day. Big Tech companies, especially those focused on artificial intelligence, have pricey values that give them more sway over the market’s broader direction.
Nvidia fell 1.2%, following a 4.1% slump on Tuesday. Micron Technology, which reports its latest results later Wednesday, fell 4.1% following its 13.2% plunge on Tuesday. Microsoft fell 1.3%.
Google's parent company Alphabet fell 0.8%. The company is replacing Verizon in the Dow on Monday. The company’s inclusion in the S&P 500 means more to investors, however, because 401(k) accounts are much more likely to include an S&P 500 index fund than anything tied to the Dow.
Alphabet will become the fifth Magnificent 7 company to join the Dow. The others are Apple, Amazon, Microsoft and Nvidia.
Technology companies, especially those with a big focus on artificial intelligence, have been behind Wall Street's record-setting run throughout the year. Analysts have warned, however, that their valuations may have become stretched.
“The next phase of the AI investment cycle is beginning to collide with market discipline," said Jason Vaillancourt, chief portfolio strategist at Columbia Threadneedle, in a research note.
Oil prices continued slipping as the U.S. and Iran negotiate a possible end to their war. Brent crude, the international standard, fell 3.8% to $73.87 a barrel. It has been trading below $80 in recent days but is still above the roughly $70 per barrel it was trading at in late February before the war began. U.S. crude prices fell 3.9% to $70.34 a barrel.