New York stock markets opened almost flat on Wednesday. A day earlier, losses were reported due to Wall Street investor concerns about the sharply increased valuations of large tech companies driven by optimism about AI.
Chip company Advanced Micro Devices (AMD), also a major player in the AI field, reported quarterly results and was subsequently lowered by 1.7 percent.
AMD released a revenue forecast for the current quarter that was unimpressive. Since the beginning of the year, AMD’s share price has more than doubled. Industry peer Nvidia fell 0.4 percent. Super Micro Computer, which specialises in AI servers, fell 4 percent after disappointing profit expectations for the current quarter.
The Dow Jones Industrial Average was up 0.1 percent in early trading at 47,124 points. The broadly based S&P 500 gained a fraction to 6,772 points, and the technology benchmark Nasdaq fell 0.1 percent to 23,321 points. On Tuesday, the Nasdaq fell another 2 percent.
McDonald’s (up 2.7 percent) also reported quarterly results. The fast-food chain saw increased revenue as customers spent more on average during a visit. McDonald’s benefited from promotions and price cuts to attract more cost-conscious customers.
Pinterest plummeted more than 20 percent due to disappointing results from the social media company. Other companies reporting figures included health insurer Humana (down 8 percent), electric car manufacturer Rivian (up 7.4 percent), biotech company Amgen (up 3 percent), insurer AIG (down 4.3 percent), and investment firm Apollo Global Management (up 0.4 percent).
UPS
Package delivery company UPS lost more than 2 percent. A UPS cargo plane crashed shortly after takeoff from Louisville, Kentucky. Three crew members were killed, as were several people on the ground.
Furthermore, there was attention for employment figures in the US corporate sector from payroll processor ADP. According to ADP, employment increased by 42,000 jobs in October. That is more than expected. In September, this was still a decline.
