Wall Street Closes Mixed, AI Concerns Pressure Tech Stocks
US stock markets closed mixed on Monday (June 22nd), after pressure on artificial intelligence (AI) technology stocks dampened market optimism about progress in peace talks between the United States and Iran. The S&P 500 fell 0.4%, the Nasdaq 100 fell 0.2%, while the Dow Jones Industrial Average still managed to gain 148 points.
The greatest pressure came from the group of large technology stocks that have been driving Wall Street's rally. Alphabet fell sharply, followed by declines in Palantir, Amazon, and Meta. Investors are beginning to question the capital expenditures of hyperscaler AI companies, especially after a long rally in the tech sector has pushed stock valuations to record highs.
SpaceX also came under scrutiny after its shares plummeted following the announcement of plans to sell new bonds. Although shares of Elon Musk's company remain well above their IPO levels, the sell-off indicates that investors are becoming more cautious about technology companies that require significant funding to support AI expansion. Market concerns center on whether these large investments can yield commensurate returns in the long term.
Meanwhile, the Dow Jones Industrial Average remained in the green after Iran announced significant progress in talks with the United States. Both sides reportedly agreed to target a peace agreement within the next two months. This sentiment has caused energy prices to weaken again, as the market hopes oil supplies from the Middle East will recover more quickly.
Falling oil prices are actually a positive sentiment for inflation and the global economy. However, this support is not enough to lift the entire stock market, as investors are still closely monitoring the direction of Federal Reserve policy. Following last week's hawkish Fed meeting, expectations of high interest rates continue to limit investor appetite for riskier assets.
Under these conditions, Wall Street remains in a selective phase. Stocks deemed overpriced following the AI rally are starting to come under pressure, while more defensive sectors sensitive to falling energy prices are still able to support the Dow Jones Industrial Average. Going forward, investors will be closely monitoring developments in US-Iran talks, oil prices, financial reports from technology companies, and US inflation data to determine the market's future direction.
Source: Newsmaker.id
