American stock indices closed down on Friday. The Dow Jones Industrial Average fell by 0.09% to 51876.11 points. The Standard & Poor's 500 index dropped by 0.05% to 7354.02 points. The Nasdaq Composite index lost 0.24% and stood at 25297.62 points at market close.
The market was pressured by concerns over the prospects of artificial intelligence (AI) and the excessive spending of companies in this sector. This occurred after The New York Times reported that OpenAI might delay its initial public offering (IPO).
Against this backdrop, Nvidia Corp.'s market capitalization decreased by 1.6%, Oracle Corp.'s by 2.6%, CoreWeave's by 2.2%, Advanced Micro Devices' by 2.1%, Super Micro's by 3.3%, Broadcom's by 3.7%, Micron's by 6.7%, and Alphabet Inc.'s by 1.8%.
In contrast, several other giants managed to record gains: Microsoft Corp.'s market value increased by 5.7%, Meta's by 1.4%, Amazon.com Inc.'s by 2.5%, Apple Inc.'s, which raised prices on tablets and laptops, by 3.1%, and Tesla's by 1.2%.
IBM's shares rose by 5.2% on news that the company has developed a 0.7 nanometer (nm) technological process to produce more powerful and energy-efficient chips.
Shares of ON Semiconductor Corp. (Onsemi), a semiconductor manufacturer, saw a sharp decline of 23.7%. This was due to news that the company is acquiring Synaptics Inc., which develops interfaces for “smart” devices, in a deal valued at $7 billion. Following the news, Synaptics' market capitalization dropped by 3.7%.
British fintech company Wise's shares surged by 10.2%. Despite the company's annual pre-tax profit declining by 8%, this figure still exceeded market forecasts.
The market capitalization of space company Rocket Lab increased by 4.8% after NASA selected them for rocket launches for two space missions.
Shares of pharmaceutical company Tango Therapeutics rose by 4.4% after the financial firm Jefferies raised its rating on them, highlighting the significant potential of the company's drug for prostate cancer.
Investors also analyzed data released by the U.S. Department of Commerce regarding the external trade balance. According to this data, in May the country's trade deficit reached its highest level in over a year at $105.8 billion, compared to $83 billion the previous month. Trading Economics reports that analysts had expected a lower deficit of $85 billion on average.
Last month, the volume of goods imported increased by 3.6% to $313.4 billion, marking the highest figure in the last 14 months. At the same time, exports decreased by 5.4% to $207.7 billion.
Meanwhile, in June, the consumer confidence index in the U.S. rose from 44.8 points the previous month to 49.5 points. This is noted in the final report from the University of Michigan, which calculates this index.
The final value of the index was better than expected, compared to the initial estimate of 48.9 points, although experts had anticipated it would be revised to reach 50 points.
