US sharemarkets closed mixed on Tuesday as a rebound in semiconductor stocks lost momentum and investors continued repositioning ahead of major technology IPOs and key inflation data.
The S&P 500 fell 0.26% to close at 7,386.65, while the Nasdaq Composite declined 0.97% to 25,678.82. The Dow Jones Industrial Average rose 86.10 points, or 0.17%, to finish at 50,872.11.
Technology stocks again came under pressure following a brief recovery at the start of the week. The iShares Semiconductor ETF fell 1% after rebounding 6% on Monday. The sector remains volatile after Friday’s 10% plunge, its sharpest one-day decline in six years.
Micron Technology slipped 1% after its 10% rebound a day earlier, while Broadcom also fell 1% as investors continued taking profits across artificial intelligence-linked stocks.
Apple declined 3.6%, extending weakness after reaching a record high earlier in the week.
Markets are also preparing for the upcoming listing of SpaceX, expected to be the largest IPO in history, while OpenAI has reportedly filed confidentially for its own public offering. Some investors view the deals as further evidence of enthusiasm surrounding artificial intelligence, while others see them as a potential test of market valuations.
Australian Market Outlook
Australian shares are expected to open modestly higher despite another volatile session on Wall Street, as lower oil prices offset weakness across technology stocks.
S&P/ASX 200 futures are up 13 points, or 0.2%, to 8,624 after fluctuating between gains and losses overnight.
Investors will be closely watching inflation data due from China and the United States later today. Chinese consumer and producer price figures are scheduled first, followed by US inflation data overnight.
Markets will also continue monitoring developments surrounding negotiations between the US and Iran, particularly after renewed military activity near Oman raised concerns about the stability of the ceasefire.
