The main US stock market indices presented a split picture at open on Wednesday, with Dow Jones Industrial Average opening in the red, and tech-heavy Nasdaq Composite opening higher.
Wider index S&P 500 was largely unchanged at 7,400.75. Nasdaq rose 0.17% at open on the back of a renewed chip stock rally, whereas Dow shed over 200 points and traded 0.4% lower at 49,517.76.
An unaticipated jump in America's wholesale inflation for the month of April dragged Dow Jones down. The producer price index posted the highest increase in more than three years after rising a seasonally adjusted 1.4% for the month.
On the other hand, shares of Micron Technology Inc., Advanced Micro Devices Inc., and Nvidia Corp. resumed their rally shortly after the opening bell.
Nasdaq's advance may be indicative of what renowned investor Michael Burry called a repeat of the 1999-2000 bubble. Burry, who is known for the 2008 financial crisis and portrayed in The Big Short, warned that markets are showing signs of speculative excess.
“Stocks are not up or down because of jobs or consumer sentiment,” Burry wrote, adding, “They are going straight up because they have been going straight up. On a two-letter thesis that everyone thinks they understand ... feeling like the last months of the 1999-2000 bubble.”
However, other experts like Dan Ives (Wedbush Securities Managing Director) remain bullish on the AI frenzy, powered by Big Tech earnings and relentless enthusiasm around artificial intelligence. Ives sees the tech-heavy Nasdaq index surging to 30,000 over the next year
Sectoral indices also traded mixed after market opening, with four out of the 11 trading the in green and rest of them trading in the red.
Most of the gains were led by the Energy Sector as prices West Texas Intermediate continued to rise. Whereas, the Utilities sector led the decline. WTI was up 0.8% to $103 per barrel, while Brent crude eased slightly to trade 0.06% lower.
Dollar Spot Index rose 0.2%, euro fell 0.3% to $1.1705, British pound fell 0.3% to $1.3498, and Japanese yen fell 0.1% to 157.83 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 0.7% to $80,137.57.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.