Global stocks gained after Nvidia slumped again as AI frenzy cooled

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HONG KONG (AP) — U.S. indexes were mixed on Monday, even as the majority of stocks rose, with global stocks mixed Tuesday after another slide for Wall Street heavyweight Nvidia.

Dow Jones Industrial Average futures were little changed while S&P 500 futures were down less than 0.1%.

European markets began to fall. France's CAC 40 fell 0.7 percent to 7,652.41. Germany's DAX fell 1.1% to 18,117.45, while Britain's FTSE 100 fell 0.1% to 8,276.46.

Japan's benchmark Nikkei 225 rose 1% to 39,173.15 after data from the Bank of Japan on Tuesday showed that the services producer price index in May was 2.5% higher than in the same period last year, compared to April. A slowdown from last year's 2.7% increase.

The Japanese Yen remains the focus, with the US Dollar to Japanese Yen exchange rate still trading near its weakest level in nearly 34 years. The yen rose to 159.45 against the dollar in Tuesday's trading. The dollar closed at 159.59 yen on Monday.

In Hong Kong, the Hang Seng pared most of the day's losses 0.3 percent higher at 18,072.90 and the Shanghai Composite Index fell 0.4 percent to 2,950.00.

Australia's S&P/ASX 200 rose 1.4% to 7,838.80. In South Korea, the Kospi rose 0.4 percent to 2,774.39.

Elsewhere, Taiwan's Taiex rose 0.3 percent, while the SET in Bangkok added 0.1 percent.

On Monday, the S&P 500 fell 0.3% to 5,447.87. The drop for Nvidia and other Wall Street artificial intelligence winners sent the Nasdaq composite down 1.1% to 17,496.82, while the Dow Jones Industrial Average rose 0.7% to 39,411.21.

Oil and gas companies were among the market's strongest stocks, as seven out of every 10 stocks in the S&P 500 advanced. Exxon Mobil climbed 3%, and oilfield services provider SLB gained 4% as oil prices hung near their highest level since April.

But the decline of a handful of high-profile stocks offset all those gains, and the spotlight shines brightest on Nvidia's 6.7% plunge. It was the third straight drop for the chip company, which had rocketed more than 1,000% since the fall of 2022.

Almost insatiable demand for Nvidia's chips to power artificial intelligence applications has been a major reason for the U.S. stock market's recent record run, even as economic growth slows under the weight of high interest rates. . But the AI ​​boom is so frenetic that it has raised concerns about a potential bubble in the stock market and excessive expectations among investors.

Nvidia's stock has been on a tear since it overtook Microsoft as Wall Street's most valuable asset last week, and is down nearly 13 percent in just three days. As Nvidia has grown in size, its stock movements have added weight to the S&P 500 and other indexes. It was the S&P 500's all-time high on Monday.

In the bond market, Treasury yields fell slightly. The yield on the 10-year Treasury fell to 4.23% from 4.26% late Friday.

It has largely fallen since peaking at 4.70% in late April, easing pressure on the stock market. Yields have dipped on hopes that inflation is slowing enough to convince the Federal Reserve to cut its key interest rate later this year.

The federal funds rate is being kept at the highest level in more than 20 years, hoping to slow the economy just enough to keep inflation under control.

In other business Tuesday, U.S. benchmark crude oil fell 20 cents to $81.43 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude fell 12 cents to $85.03 a barrel.

The euro was unchanged at $1.0732.

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