FX.co ★ US Stocks Lack Direction

In the afternoon market session, US equities faced challenges in finding clear direction as investors assessed shifts in trade policy alongside recent gains in the technology sector. The S&P 500 remained relatively stable, having recovered its losses for the year, while the Dow Jones Index saw a decline of more than 50 points. In contrast, the Nasdaq 100 experienced a 0.5% increase, largely driven by significant gains in leading chip manufacturers. Nvidia's stock rose over 3% on the back of AI chip shipment news to Saudi Arabia, and AMD saw a 4% increase following its announcement of a $6 billion stock buyback. A broader rally spurred by advancements in AI technology resulted in a 17% rise for Super Micro Computer and offered a positive outlook linked to the easing of trade tensions. Market sentiment received a boost from a temporary US-China tariff reduction agreement, fueling hopes for a more permanent resolution despite ongoing uncertainties. Concurrently, President Trump's Middle East tour facilitated new business agreements, such as the Boeing-Qatar Airways deal and AI collaborations in the Gulf region. Although large-cap stocks performed robustly, the overall sector results were varied, with Federal Reserve officials expressing a cautious perspective amidst varying inflation data.