The three major U.S. stock indexes ended mixed in New York. Tech shares weakened as profit-taking hit artificial intelligence (AI) names, while airline and travel stocks rose on a sharp drop in global oil prices.
On the 24th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 0.35% at 51,848.90. The Standard & Poor's (S&P) 500 fell 0.10% from the prior session to 7,358.22, and the Nasdaq closed down 0.43% at 25,476.64.
The market's focus was on Micron Technology's results to be released after the close. With debate persisting over lofty valuations for semiconductor and big tech stocks that have led the recent AI frenzy, investors stayed on the sidelines ahead of the earnings release.
Microsoft (MS) fell 2.3%, and Oracle and Meta lost 4.6% and 1.4%, respectively. Selling broadened across AI-related stocks that had surged recently. Rick Gardner, chief investment officer (CIO) at RGA Investment, said, "The recent tech pullback is a process of resetting overly high expectations," adding, "The market is taking a breather."
By contrast, airline and travel names advanced across the board as global oil prices slumped. The S&P 500 Airlines Index jumped 5.2%, and online travel platforms Expedia and Booking Holdings also gained.
Oil prices fell sharply as hopes grew for a normalization of traffic through the Strait of Hormuz. With concerns easing over supply disruptions in the Middle East, August Brent crude settled down 4.33% from the prior session at $73.74 a barrel. August West Texas Intermediate (WTI) fell 3.92% to $70.34. That is near levels before fears of a U.S.-Iran military clash intensified.