The S&P 500 Index slumped on Wednesday following its best day in weeks, as declines in some corners of Big Tech offset gains elsewhere, including energy as oil prices jumped on the escalation of the US-Iran war.
The US equities benchmark slipped 0.1% - its fourth loss in five days after swinging between modest gains and losses for most of the session. The technology-heavy Nasdaq 100 Index fell 0.5%, after falling as much as 0.8% earlier in the session. An exchange-traded fund tracking chipmakers erased premarket losses to rise 0.44%. Nvidia Corp. climbed 2.3%, paring earlier declines.
A basket of the so-called Magnificent Seven companies fell about 1%, led by declines in Meta Platforms Inc. and Microsoft Corp. Among other individual shares, Super Micro Computer Inc. rallied 20%, the most of S&P 500 companies, after the server maker issued a business update that included raising its fourth-quarter gross margins outlook and saying the backlog was at a record.
ALSO READ: Apple Plans Sweeping Mac Refresh With New MacBook Pro, iMac As AI Demand Accelerates
"AI optimism remains intact, but the burden of proof has shifted decisively onto management teams," wrote Mark Malek, chief investment officer at Siebert Financial. "Future earnings calls will increasingly focus on return on invested capital rather than AI ambitions."
Advanced Micro Devices Inc. and Anthropic PBC have agreed on a deal for AI servers worth tens of billions of dollars, the Wall Street Journal reported. The deal will help bolster AMD in competing against industry leader Nvidia and provide Anthropic with essential computing power, the newspaper said. AMD shares rose 1.5%.
Energy shares were among the best groups in the S&P 500, advancing 1.2% as oil prices jumped, after the US and Iran signaled they aren't ready to return to the negotiating table. Brent crude traded near 93.76.
Elsewhere, AT&T Inc. rose 3.5% after the telecom company reported second-quarter results that beat expectations on key metrics, including wireless postpaid phone net adds and adjusted earnings. GE Vernova Inc. fell 8.7% - the biggest S&P 500 decliner on Wednesday - after the power equipment manufacturer's adjusted Ebitda narrowly missed expectations, with the company still facing weakness in its wind business.
ALSO READ: Trump Draws Red Line For Iran: 'One Bridge Or Power Plant For Every Ship Hit In Hormuz'
Philip Morris International Inc. beat Wall Street estimates for second-quarter sales, helped by strong demand for smoke-free products, with shares rising nearly 4% after touching a fresh record. Meanwhile, software company Pegasystems Inc. tumbled 16% after analysts noted that the management's comments about delayed purchasing decisions from clients seem to echo similar remarks from IBM earlier in the month.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.