U.S. markets retreated on Tuesday, ending the S&P 500’s seven-day winning streak. The S&P 500 slipped 0.38%, the Nasdaq dropped 0.67%, and the Dow Jones edged down 0.20%. After a week of strong gains, investors are showing renewed caution.
The technology and AI sectors weighed heavily on performance. Oracle tumbled more than 5% after reporting weaker-than-expected cloud margins : a result that reignited doubts about the profitability of artificial intelligence ventures. Tesla also fell about 4.5%, as concerns grew that its recent price cuts could squeeze margins on its new Model Y. Even chipmakers like Micron and Western Digital faced pressure, dragging the semiconductor sector lower.
Still, there were a few bright spots: IBM rose 1.5% following the announcement of a strategic partnership with Anthropic to strengthen its enterprise AI ecosystem, while Dell gained more than 3%, boosted by stronger forecasts for AI server sales.
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