(Updates to US afternoon trading)
*
Paramount Skydance gains on cost-cut, investment plans
*
Japan’s SoftBank offloads Nvidia shares
*
CoreWeave drops after trimming annual revenue forecast
*
S&P 500 0.24%, Nasdaq -0.17%, Dow 1.02%
By Purvi Agarwal and Noel Randewich
Nov 11 (Reuters) –
Wall Street stocks were mixed on Tuesday, with Nvidia and other artificial intelligence-related companies falling on renewed concerns about elevated valuations, while markets monitored progress toward ending the longest U.S. government shutdown.
Adding to jitters about AI-related stocks that have fueled the market’s rally in recent years, Japanese technology investor SoftBank Group
disclosed
its sale of Nvidia shares for $5.8 billion. The stock dropped 2.3%. Nvidia-backed CoreWeave’s shares slumped over 14% after the cloud computing firm trimmed its annual revenue forecast due to data center hiccups.
Members of the U.S. House of Representatives headed back to Washington after a 53-day break for a vote that could end the
longest U.S. government shutdown in history
, with the Polymarket betting platform fully pricing in a resolution this week.
“Expectations are that the shutdown is over. … People will get back to work, economic data will be released once again and uncertainty will be behind us,” said CFRA Chief Investment Strategist Sam Stovall.
Sentiment was dampened by a weekly update of ADP’s preliminary payroll figures showing that private employers shed an average of 11,250 jobs a week for the four weeks ended October 25. U.S. President Donald Trump warned of an economic and national security disaster if the Supreme Court ruled against his use of an emergency powers law to impose sweeping tariffs.
The S&P 500 was up 0.24% at 6,848.91 points.
The Nasdaq declined 0.17% to 23,487.55 points, while the Dow Jones Industrial Average was up 1.02% at 47,852.49 points.
Nine of the 11 S&P 500 sector indexes rose, led by healthcare, up 1.92%, with drugmakers Eli Lilly , Merck and Amgen up between 2.5% and 4%.
The S&P 500 technology index dipped 0.6%.
Occidental Petroleum gained 0.8% after the shale producer beat third-quarter profit expectations.
AI-related stocks Palantir and Meta Platfoms both fell more than 1%.
Paramount Skydance surged almost 9% after the newly merged media firm announced more cost cuts and plans to invest $1.5 billion in its streaming and studio divisions. U.S. bond markets were closed for the Veterans Day holiday.
Advancing issues outnumbered falling ones within the S&P 500 by a 2.7-to-one ratio.
The S&P 500 posted 26 new highs and two new lows; the Nasdaq recorded 89 new highs and 116 new lows.
(Reporting by Twesha Dikshit and Purvi Agarwal in Bengaluru, and by Noel Randewich in San Francisco; Editing by Maju Samuel and Richard Chang)