The three major stock indices on the New York Stock Exchange began mixed within a flat range. With strong performance from U.S. retailers, tech stocks showed weakness, leading to diverging trends in the market.
As of 9:38 a.m. local time on the 19th, the Dow Jones Industrial Average was up 92.22 points (0.21%) at 45,004.04 on the New York Stock Exchange. The Standard & Poor's (S&P) 500 index fell by 10.19 points (0.16%) to 6,438.96, while the Nasdaq Composite Index was down by 101.67 points (0.47%) at 21,528.11.
There are no significant economic indicators or events scheduled that could sway the market. Consequently, the New York Stock Exchange is showing varying sentiments based on individual stocks and sectors.
Tech giants with market capitalizations over $1 trillion, excluding Apple, are all in a downtrend. Concerns expressed by OpenAI's Sam Altman regarding a possible bubble in the artificial intelligence (AI) industry, along with China's government demanding that local data centers use more than 50% Chinese-made semiconductors, have dampened investor sentiment.
Altman noted at a press briefing the previous day, "It is true that investors are overly excited about AI," reiterating that "there is a bubble forming." He expressed concerns that while he would not halt investments in the AI industry, the values of AI corporations are already at a "control incapacitating level."
China's move to restrict the use of foreign chips has also put downward pressure on tech stocks. According to the Hong Kong media South China Morning Post (SCMP), Chinese authorities are demanding that public-owned data centers source more than half of their computing chips from Chinese companies.
In contrast, the Dow index, focused on blue-chip stocks, is performing well. Among the 30 stocks that make up the index, 23 are showing an upward trend. Although the second-quarter results of U.S. retail giant Home Depot fell short of expectations, the steady increase in same-store sales seems to have caught the market's attention. Home Depot's stock has risen by over 4%. Walmart is also set to announce its second-quarter results this week. Should Walmart's performance exceed expectations, uncertainties surrounding tariffs may diminish.
By sector, all industries are performing well except for energy, technology, and telecommunications services. U.S. semiconductor manufacturer Intel's stock is surging by over 10%. News that Japan's SoftBank invested approximately $2 billion to acquire Intel's common shares acted as a positive factor. Cybersecurity company Palo Alto Networks is experiencing over a 5% increase in stock prices, as its second-quarter results exceeded expectations.
Meanwhile, U.S. Commerce Secretary Howard Lutnick stated that if the government provides subsidies to specific corporations, it should seek equity in return. Lutnick mentioned in an interview with CNBC that subsidies under the CHIPS Act could ultimately be converted into equity investments, stating, "President Donald Trump believes that the subsidies we provide are not free but should secure equity."
European stock markets are on the rise. The Euro Stoxx 50 index is up 0.83% from the previous day. The French CAC 40 index is up 1.03%, the German DAX index is up 0.48%, and the UK's FTSE index has risen by 0.25%.
International crude oil prices are experiencing a substantial drop. As of 10:15 a.m. local time, the price of September West Texas Intermediate (WTI) crude oil had fallen by 1.17% to $62.68 per barrel.