FX.co ★ US Stocks Whipsaw to Trade Mixed

On the first trading day of the year, U.S. stocks reversed their initial gains, maintaining a decline from recent record highs. This shift came as software companies faced new challenges, contrasting with the mixed performance of other sectors. The Nasdaq 100 dropped by 0.2%, the S&P 500 remained unchanged, and the Dow advanced more than 200 points. Tech giants faced scrutiny over ambitious capital expenditure promises related to AI infrastructure, affecting companies like Microsoft, Meta, Amazon, Palantir, and Intuit, whose shares fell between 2% and 5%. Tesla's stock also decreased by over 1% following their failure to meet the fourth-quarter delivery target. On a positive note for the sector, chip manufacturers experienced significant gains driven by favorable corporate news, with Nvidia up 2% and Micron and Intel each surging 7%. In related developments, Baidu revealed plans for an IPO of its AI chip division in Hong Kong, prompting asset managers to upgrade ASML. Elsewhere, broader market sectors remained buoyed by expectations of strong economic growth and lower interest rates projected by the Federal Reserve this year.