02.07.202616:58:47UTC+00Nasdaq Sinks, Dow Rises to Record High

US equity markets split on Thursday as renewed pressure on mega-cap technology names offset support from lower short-term interest rates. The S&P 500 slipped 0.4%, while the Nasdaq 100 fell more than 2%.

AI-related stocks sold off sharply as investors reassessed whether the sector has become overbought. Sentiment was hit by reports that OpenAI has begun talks to sell a 5% stake to the US government, as well as by news that Meta (-5%) may start selling excess computing capacity—an indication that its earlier capital spending may have been too aggressive.

Chipmakers and hardware names were among the hardest hit: Micron declined 7%, Marvell and Applied Materials each dropped 10%, and Sandisk tumbled 13%. Tesla lost 8% despite reporting solid vehicle deliveries.

In contrast, more traditional sectors outperformed, lifting the Dow Jones Industrial Average by 300 points to a fresh record high. Treasury yields retreated after a softer-than-expected jobs report, prompting investors to push back expectations for further Federal Reserve rate hikes. Apple advanced 5%, while Visa and Walmart each gained more than 2%.