The New York stock market, which had surged on expectations that the U.S. federal government would lift its shutdown, ended mixed as technology stocks went through a correction.
On the 11th (U.S. Eastern time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 47,927.96, up 559.33 points, or 1.18%, from the previous session. The Standard & Poor's (S&P) 500 rose 14.18 points, or 0.21%, to 6,846.61, while the Nasdaq Composite fell 58.87 points, or 0.25%, to 23,468.30.
There was a clear move to sell tech stocks and buy blue chips that day. On expectations of the federal government lifting the shutdown, the tech-heavy Nasdaq had climbed sharply since Friday before pulling back that day. The Philadelphia Semiconductor Index, composed of artificial intelligence (AI) and chip-related names, slumped 2.48%.
News that SoftBank sold its entire stake in Nvidia also weighed on the sharp drop in the Philly index that day. SoftBank Group said in its third-quarter earnings filing that it sold all Nvidia shares for $5.83 billion.
Talk of an artificial intelligence (AI) bubble resurfaced. Nvidia, Broadcom, TSMC, and ASML fell in the 1% range, and AMD tumbled 2.65%. On selling in AI-themed stocks, Oracle fell 1.94% and Palantir dropped 1.37%.
However, Apple rose 2.16% amid the tech sell-off. While cautious on AI infrastructure spending, its solid cash flow and business structure shone through amid the AI bubble debate.
Funds rotating out of tech flowed into blue chips, particularly pharmaceuticals. Among drugmakers, Eli Lilly, the largest by market capitalization, rose 2.27%, and Amgen jumped 4.57%.