The three major stock indices on the New York Stock Exchange closed lower. The expectations surrounding the artificial intelligence (AI) industry, led by Microsoft (MS) and Meta, seem to have stimulated profit-taking desires.
On the 31st (Eastern Time), the Dow Jones Industrial Average closed down 330.30 points (0.74%) at 44,130.98 on the New York Stock Exchange (NYSE). The Standard & Poor's (S&P) 500 index fell 23.51 points (0.37%) to 6,339.39, while the tech-heavy Nasdaq Composite index finished down 7.23 points (0.03%) at 21,122.45.
On that day, MS recorded an intraday gain of 8.22%, and its market capitalization surpassed $4 trillion. It is the second corporation, following NVIDIA, which first exceeded a market cap of $4 trillion earlier this month.
However, after that, profit-taking sales poured in, causing MS to close up 3.93%.
Meta also surged 11.25% after recording an 'earning surprise' in the second quarter. It is believed that the upward revision of its annual capital investment outlook spurred investor sentiment.
By sector, all except for telecommunications services and utilities declined, with the pharmaceutical sector particularly sluggish. This appears to be a result of President Trump's letter urging 17 global pharmaceutical corporations, including Eli Lilly, to lower medication prices. The healthcare sector index fell 2.79%.
The design software company Figma saw its stock soar immediately after going public. Figma, which launched at an offering price of $33, closed at $115.50. The optimism surrounding design software sparked buying sentiment.