The three major U.S. stock indexes in New York closed lower across the board. The pullback was attributed to risk-off sentiment as investors grew wary of the massive expenditure by artificial intelligence (AI) corporations and the possibility of additional tightening by the Federal Reserve (Fed).
On the 23rd (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended at 51,666.84, down 0.09% from the previous session. The Standard & Poor's (S&P) 500 fell 1.44% to 7,365.46, and the Nasdaq dropped 2.22% to 25,587.04.
In particular, semiconductor stocks took a direct hit as valuation pressures mounted on AI-related names that had surged sharply of late. Micron, ahead of earnings, plunged 13.2%, while Intel (6.1%) and Qualcomm (8.0%) also fell. Large-cap tech stocks such as Tesla (5.7%) and Nvidia (3.6%) were weak on profit-taking.
In the foreign exchange market, the prospect of additional Fed rate hikes fueled dollar strength. The U.S. dollar index, which measures the dollar's value, rose 0.4% to 101.38, the highest in a year.
International oil prices extended losses on easing supply concerns. Market jitters subsided somewhat as the U.S. government temporarily waived some sanctions and signs emerged of resuming tanker traffic through the Strait of Hormuz. Brent crude for August settlement finished at $77.08 per barrel, down 1.05% from the previous session, while West Texas Intermediate (WTI) closed at $73.21, down 0.88%.