NEW YORK (AP) — More swings for stocks in the artificial-intelligence industry are weighing on Wall Street, but the overall U.S. market is holding relatively steady following profit reports from several companies that topped expectations. The S&P 500 slipped 0.1% early Tuesday to give back some of its gain from Monday. The losses for AI stocks sent the Nasdaq composite down 0.5%, while the Dow Jones Industrial Average edged up 80 points, or 0.2%.
Meta Platforms, Micron and Intel all fell. Halliburton climbed after reporting profit and revenue that were bigger than analysts expected. Stock indexes fell in Europe again.
THIS IS A BREAKING NEWS UPDATE. Check back for updates. AP’s earlier story follows below.
U.S. futures are mostly lower as artificial-intelligence stocks come under pressure again and oil prices rose amid sporadic fighting in the Middle East.
Futures for the S&P 500 fell 0.1% on Tuesday, while those for the Nasdaq declined 0.5%. Futures for the Dow Jones Industrial Average gained 0.2%.
Shares of South Korea's AI company Elice Group tumbled 30% on its market debut with investors seemingly wary of the debt being taken on by companies in the sector, with a recent tech selloff gaining momentum again. AI companies perceived as vulnerable because of start-up costs, like CoreWeave in the U.S., are being targeted. Shares of CoreWeave, down 30% this month on such fears, tumbled 4.5% before the market opened.
Anxiety over debt in the sector is being fanned due to inflation and rising odds that the Federal Reserve will hike borrowing costs for a second time this year to cool spending and borrowing.
Benchmark U.S. crude jumped 2% to $100.55 a barrel. Brent crude, the international standard, gained 1.6% to $111.25 a barrel.
Uncertainty about when the war with Iran will allow the energy industry to return to normal means oil prices are unlikely to ease any time soon. The death toll from a Houthi missile strike on a government military camp in southern Yemen rose to 73 people, all new recruits, making it the deadliest strike since fighting in the country began escalating three months ago, a senior Yemeni government official said Tuesday.
An upheaval in Europe is hitting markets there. France’s CAC 40 fell 0.8% to 7,809.10, while the German DAX shed 0.8% to 25,109.83. Britain’s FTSE 100 lost 0.6% to 10,702.16.
Rising fuel costs, discontent with the state of schools, declining public services and a housing crisis are fueling an autumn of protests in Europe.Crowds have protested for weeks in major cities, with some demonstrations marked by arrests, looting, injuries and violence across France, Italy and Albania.
Major U.S. companies are also rolling out quarterly results after the bell Tuesday, including Netflix and SpaceX.
Netflix announced last week that it plans to lay off about 6% of its workforce, amounting to nearly 1,000 positions, as the streaming giant makes wider “organizational changes.” The Elon Musk-led SpaceX will be announcing its second quarterly report after going public in June. On Monday Musk pledged to give one share of SpaceX to “every kid in America” next year.
The U.S. dollar dropped to 158.14 Japanese yen from 158.46 yen. The euro cost $1.1211, down from $1.1227.
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