The three major U.S. stock indexes ended mixed in New York. Despite news that talks between the United States and Iran were making progress, big tech stocks fell across the board as concerns grew over artificial intelligence (AI) infrastructure investment expense.
On the 22nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 0.29% from the previous session at 51,712.71. In contrast, the Standard & Poor's (S&P) 500 fell 0.37% to 7,472.79, and the Nasdaq ended down 1.33% at 26,166.60.
Investor focus centered on space company SpaceX. Shares plunged 16.4% on news that SpaceX would issue investment‑grade corporate bonds for the first time, at a minimum size of $20 billion (about 31 trillion won), to raise funds for building AI infrastructure. SpaceX said it holds about $10 billion in cash and cash‑equivalent asset, but investors focused more on the prospect of a sharp increase in borrowing and the possibility that the company is overvalued.
Big tech corporations also weakened in tandem. Alphabet, Google's parent, fell 5% amid reports that key AI researchers had moved to rivals. Large data‑center operators such as Meta, Amazon, and Microsoft (MS) also dropped 2% to 4% as the burden of AI investment expense came to the fore.
Still, on Wall Street, the mood was to interpret this pullback as a short‑term dent in investor sentiment rather than a structural headwind. Bill North, chief investment director at U.S. Bank, said, "Tech stocks are sensitive to investor sentiment and tend to move in one direction," adding, "Over the long term, the most powerful growth engine remains AI data‑center construction."
Global oil prices fell sharply. Expectations for easing tensions in the Middle East grew as the United States and Iran, at their first high‑level meeting after signing a memorandum of understanding (MOU) to end hostilities, agreed on a roadmap to reach a final agreement within 60 days.
The U.S. Treasury also decided to temporarily allow sales of Iranian crude, bolstering the outlook for increased oil supply. As a result, August Brent crude fell 3.31%, and July West Texas Intermediate (WTI) declined 2.32%.
Investors' attention is fixed on the May personal consumption expenditures (PCE) price index, due on the 25th. The PCE is the inflation gauge the Federal Reserve prioritizes most. As the Fed has repeatedly emphasized the need to stabilize prices recently, some say that if the reading tops market expectations, the possibility of a rate hike could reemerge.