US indices rise on AI stock gains, European markets fall amid pressure
Date
6/26/2024 4:29:30 AM
(MENAFN) The U.S. Stock market saw a notable uptick yesterday, driven primarily by the impressive performance of Nvidia and other artificial intelligence-related stocks, which managed to overcome a broad wave of selling. Investors are keenly awaiting comments from Federal Reserve officials and the release of key economic data later this week, in hopes of gaining further insights into the future trajectory of monetary policy. Specifically, the Standard & Poor's 500 index increased by 12.86 points, or 0.24 percent, closing at 5,460.73 points, while the nasdaq Composite index climbed by 75.34 points, or 0.43 percent, to settle at 17,572.16 points.
In contrast, the Dow Jones Industrial Average experienced a slight decline, dropping 12.42 points, or 0.03 percent, to end at 39,398.79 points. Notably, Nvidia shares surged by over 3 percent, and other major technology stocks, including Amazon, Meta, and Google, rebounded with gains exceeding 1 percent after previous declines on Monday.
Meanwhile, European stock markets faced downward pressure, particularly in the industrial and technology sectors. The European STOXX 600 index fell by 0.3 percent during trading sessions, largely impacted by a significant 8.4 percent drop in Airbus shares. This decline followed Airbus's announcement of reduced industrial and financial targets, along with substantial losses of 900 million euros (USD965 million) attributed to its troubled space sector operations. Consequently, the industrial goods and services sector index saw a 1.5 percent decline in early trading.
The technology sub-index, which encompasses shares of several major European semiconductor companies, also dropped by 1.5 percent, reflecting the weak performance of Nvidia's stock on Wall Street the previous night. Additionally, German Merck shares plummeted by 8.7 percent after the pharmaceutical company announced the cessation of trials for a cancer treatment drug. These factors collectively contributed to the broader decline in European stock markets, highlighting the varied dynamics influencing global financial markets.
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