Tech-heavy Nasdaq composite index ticked lower at open after major selloff in IT stocks on Wednesday. On the other hand, the S&P 500 and Dow Jones Industrial Average opened higher.
The selloff was triggered after Anthropic PBC launched its new enterprise AI automation tool that sparked fears it could eat into the core businesses of data and information services firms.
Nasdaq opened 0.5% lower, S&P 500 opened 0.1% higher, while Dow Jones ticked 0.4% higher at open. As of 10 a.m. EST, Nasdaq traded 0.75% lower at 23,080.24, S&P 500 erased marginal gains to trade 0.22% lower at 6,897.62, whereas Dow Jones continued to trade 0.23% higher at 49,352.99.
Stocks of AI-linked IT giants plunge, with Palantir Technologies Inc. trading nearly 10% lower at $142.73, Advanced Micro Devices Inc. trading nearly 15% lower at $206.76, and bellwether Nvidia Corp falling 2% to trade at $177.05.
Pharma giant Eli Lilly's stock was lifted by a positive sales forecast for the year after demand for its weight loss drug catapulted its position at the peak of the obesity market.
Anthropic included a legal tool on its website that it says it can automate work like contract reviewing and legal briefings. “All outputs should be reviewed by licensed attorneys,” according to the website.
After the US market opened, three out of the 11 sectoral indices traded lower, dragged by the communications and Information Technology sectors. On the other hand, gains were led by materials and real estate sectors.
Crude oil prices rose, with West Texas Intermediate trading 0.38% higher at $63.45 a barrel, and global benchmark Brent crude trading 0.48% higher at $67.65 a barrel.
Spot gold and spot silver prices also rose, with the former trading 0.72% higher at $4,979.74 an ounce and latter trading over 4% higher at $88.85 an ounce.
The Bloomberg Dollar Spot Index rose 0.2%, while the Euro and British Pound remained little changed at $1.1817 and $1.3685 respectively. The Japanese yen, however, fell 0.5% to 156.50 per dollar.
Bitcoin, the largest traded cryptocurrency, fell 2.3% to $74,400.76.
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