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The S&P 500 was relatively unchanged on Friday as OpenAI is reportedly considering delaying its IPO and as a selloff in tech gathered pace amid mounting concerns over the rising cost of artificial intelligence infrastructure.
The Dow nosed ahead 8.7 points to 51,929.32.
The much-broader index sank 8.37 points to 7,3349.12.
The NASDAQ fell 75.77 points to 25,282.83.
Chip stocks were weaker after a New York Times report that OpenAI is considering delaying its IPO to next year because of SpaceX’s poor performance following its debut and overall volatility in AI-related shares.
The report raised concerns about “sustainability of their infrastructure spending given the delay in funding from the capital markets,” wrote JPMorgan traders in a note.
Investors continued to buy up shares of health-care stocks after the group was a standout in the prior trading day. Shares of Eli Lilly were up nearly 6%, while Johnson & Johnson gained more than 3%. AbbVie shares advanced more than 2%.
Chip stocks were weaker after a New York Times report that OpenAI is considering delaying its IPO to next year because of SpaceX’s poor performance following its debut and overall volatility in AI-related shares.
Shares of Micron Technology declined 2%, as did Advanced Micro Devices and Intel. Additionally, software stock Oracle dropped more than 1%.
Consumer sentiment rose but was still at low levels as June drew to a close while longer-term inflation expectations plunged, the University of Michigan reported Thursday.
The university’s Surveys of Consumers saw the headline sentiment index at 49.5, just above the 49.0 consensus estimate from Dow Jones but 10.5% above the May reading.
Prices for the 10-year Treasury forged ahead, lowering yields to 4.37% from Thursday’s 4.40%. Treasury prices and yields move in opposite directions.
Oil prices tumbled $2.91 to $69.01 U.S. a barrel.
Gold prices leaped $48.60 to $4,096.20. U.S. an ounce.
