US Stock Market Today: Nasdaq Jumps As AI Frenzy Stays Strong; Dow Slides On Wholesale Inflation Surge
The main US stock market indices presented a split picture at open on Wednesday, with Dow Jones Industrial Average opening in the red, and tech-heavy Nasdaq Composite opening higher.
Wider index S&P 500 was largely unchanged at 7,400.75. Nasdaq rose 0.17% at open on the back of a renewed chip stock rally, whereas Dow shed over 200 points and traded 0.4% lower at 49,517.76.
An unaticipated jump in America’s wholesale inflation for the month of April dragged Dow Jones down. The producer price index posted the highest increase in more than three years after rising a seasonally adjusted 1.4% for the month.
On the other hand, shares of Micron Technology, Advanced Micro Devices, and Nvidia Corp. resumed their rally shortly after the opening bell.
Nasdaq’s advance may be indicative of what renowned investor Michael Burry called a repeat of the 1999-2000 bubble. Burry, who is known for the 2008 financial crisis and portrayed in The Big Short, warned that markets are showing signs of speculative excess.
“Stocks are not up or down because of jobs or consumer sentiment,” Burry wrote, adding, “They are going straight up because they have been going straight up. On a two-letter thesis that everyone thinks they understand … feeling like the last months of the 1999-2000 bubble.”
However, other experts like Dan Ives (Wedbush Securities Managing Director) remain bullish on the AI frenzy, powered by Big Tech earnings and relentless enthusiasm around artificial intelligence. Ives sees the tech-heavy Nasdaq index surging to 30,000 over the next year
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