Market Jitters: Tech Stocks Tumble Amid AI Disruption Fears
Tech stocks, including Microsoft, Intuit, and Adobe, suffered declines as investor concerns over AI disruption grew. Despite Palantir's 4.4% rise, broader market jitters caused the S&P 500 software index to drop. Sentiments were buoyed slightly by small-cap gains, while Walmart reached a $1 trillion valuation.
The S&P 500 and Nasdaq experienced downturns on Tuesday, driven by a widespread selloff in software and cloud stocks, despite Palantir’s strong performance. Microsoft decreased by 2.3%, while Intuit and Atlassian saw more significant drops, both falling over 8%. The decline was widespread, affecting major names like Adobe, Datadog, and Oracle.
Despite the negative trend, Palantir rose by 4.4%, supported by positive results tied to AI demand. Overall, the S&P 500 software and services index fell by 3.3%, marking its fifth consecutive day of declines. Concerns over AI's rapid evolution and its potential impact on pricing power fueled market uncertainties.
Meanwhile, small-cap indices provided a glimmer of hope, with the Russell 2000 and mid-cap S&P indices making gains. Investors also reacted to a sharp downturn in gold and silver markets, influenced by Fed-related news, while Walmart achieved a record $1 trillion market valuation.
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