The S&P 500 fell on Wednesday, weighed down by renewed weakness in artificial intelligence leaders. The broad market index dropped 0.28% to close at 6,637.97, while the Nasdaq Composite slipped 0.34% to 22,497.86. The Dow Jones Industrial Average lost 171 points, or 0.37%, to finish at 46,121.28.
Nvidia and Oracle extend declines
Nvidia slid nearly 1% after tumbling the day before, as investors questioned the sustainability of the AI boom. Earlier this week, the chipmaker unveiled a massive US$100bn partnership with OpenAI, a deal that has stirred concerns about a circular industry model. Oracle also extended its sell-off, falling nearly 2%.
Despite that weakness, Intel provided a lift into the close. Shares surged more than 6% on reports from Bloomberg that Apple is considering an investment in the chipmaker. The move comes just days after Nvidia itself said it would inject US$5bn into Intel.
Micron Technology told a different story. Its shares dropped almost 3% after earnings and guidance disappointed, reinforcing doubts about the durability of the AI trade.
Valuation concerns weigh on sentiment
The pullback follows Tuesday’s losses, which snapped a three-day winning streak for the S&P 500. That index had touched fresh intraday records before profit-taking set in. Federal Reserve Chair Jerome Powell highlighted elevated valuations at a press conference this week, a comment that added to investor caution.
Even with this week’s pullback, the S&P 500 remains almost 3% higher for the month, far stronger than the average September decline of more than 4% seen over the past five years.
Investors brace for economic data and political risks
Attention now turns to fresh US economic indicators. Weekly jobless claims are due Thursday, followed by PCE inflation data on Friday. Markets are also monitoring political tensions in Washington. President Donald Trump cancelled a meeting with Democratic leaders that had been aimed at avoiding a government shutdown before the 30 September deadline.
Australian outlook and today’s agenda
Futures suggest the ASX 200 will open down 41 points, or half a percent, at 8,769, mirroring Wall Street’s losses. Job vacancies and wealth data are due locally, while Premier Investments delivers results and Suncorp holds its AGM.
Globally, the Swiss National Bank meets on policy. Later, the US releases GDP, durable goods, jobless claims, and housing data. Costco and Accenture are among companies reporting earnings.
