S&P 500 Drops After Tech Sell-off; Oracle, Dell Move on Cloud, AI
Wall Street experienced a mixed day of trading, with the S&P 500 index retreating after a substantial rally from April lows. Tech behemoths and Tesla dragged the index down, while Oracle and Dell Technologies saw significant movements due to cloud margin concerns and AI demand, respectively.
The S&P 500 index, which had surged by $16 trillion from its April lows, dipped as traders voiced concerns about the rally being excessive and signs of buyer fatigue. Wall Street experts noted that the rapid rise of multiple large technology stocks could indicate disconnected valuations from underlying fundamentals.
Goldman Sachs and Barclays reported high bullish sentiment among clients, with a Bloomberg Intelligence measure even returning to the 'manic' zone. However, UBS Global Wealth Management maintained that the equity rally is supported by solid fundamentals that should continue to back the market.
Oracle slipped 2.5% after a report raised concerns about its cloud margins being lower than estimated. Meanwhile, Dell Technologies climbed 3.5% following increased estimates driven by strong AI demand.
Investor optimism has been growing heated, with many seemingly focused on chasing upside and less concerned about potential risks such as a US government shutdown and stretched valuations.
The US 10-year yields dropped three basis points to 4.13%, and the dollar rose amidst the market's mixed performance. Traders parsed remarks from Federal Reserve officials, with Governor Stephen Miran suggesting the Fed can keep easing policy despite limited tariff impact on inflation, and Minneapolis President Neel Kashkari warning about the risks of drastic rate cuts.
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- Trump announces Chinese leader's confirmation of TikTok agreement
- EU Leaders Discuss 'Drone Wall' to Tighten Border Security After Munich Incident
