Breaking News: S&P 500 Inches Up by 0.5% to 5,496 While Dow Jones Retreats – Get the Latest Updates on Tech Giants and Automakers!
The S&P 500 saw a modest increase of 0.5% to 5,496, equivalent to a 0.2% rise from the Swedish market close, while the Dow Jones dipped by 0.2% to 40,737. On the other hand, the tech-heavy Nasdaq Composite advanced by 0.9% to 17,026.
Apple experienced a slight decline of nearly half a percent as it unveiled its new iPhone and other products on Monday. Analysts noted that the news was largely in line with expectations following the company’s announcement of its AI initiative, “Apple Intelligence.”
In addition, Apple lost a tax dispute with the EU concerning 13 billion euros in Irish tax. The EU court in Luxembourg supported a 2016 ruling that Ireland had violated state aid rules by providing Apple with an unfair advantage.
Software company Oracle surged by 11% after reporting higher-than-expected earnings for the first quarter of the fiscal year. The company also announced a partnership with Amazon Web Services (AWS).
The technology sector received a boost from Taiwanese giant TSMC, which saw a 33% increase in revenue in August compared to the same month last year. While the growth was slower than July’s 45% increase, Bloomberg noted that it was a positive sign for the smartphone market and demand for Nvidia’s AI chips.
Nvidia had a volatile trading day but ended up 1.5%. Amazon and Microsoft both saw gains of over 2%, while Alphabet and Meta Platforms remained flat.
Automakers, on the other hand, faced challenges following German company BMW’s profit warning, citing lower operating margins and returns on capital employed than previously forecasted. Delivery disruptions and technical issues related to integrated brake systems (IBS) from a supplier further contributed to the downward revisions. Additionally, BMW noted that sustained weak demand in China was impacting sales volumes.
General Motors and Ford saw declines of 5.4% and 3.2%, respectively, while electric car maker Tesla rose by 4.6%.
Automakers were not the only ones in the red on Tuesday, as banks also faced losses. JP Morgan’s chief operating officer cautioned that analysts’ expectations for next year’s net interest income were too high and that cost estimates were overly optimistic.