US stock market today: NASDAQ 100 rises 100 pts; Dow Jones and S&P 500 extend pullback on Tuesday

The US stock markets opened on a mixed note on Tuesday, after plunging as much as 1% on Monday. The NASDAQ 100 traded over 100 points higher, while the S&P 500 traded around flat line, followed by the 120-points drop in the NASDAQ 100.

Meanwhile, the US 10Y yields maintained their multi-decade high levels on Tuesday. Rising borrowing costs and AI-safety concerns remain top sentiment drivers for the investors as they assess the renewed risks in AI-related stocks.

The Brent crude oil futures dropped over 1.4% on Tuesday, below $105 per barrel mark, after Iran said it is waiting for US’s response on 7-point proposal sent to the US. The diplomatic efforts continue between the US and Iran to resolve the supply disruption issue in the Strait of Hormuz. Meanwhile, the east-west pipeline in Saudi Arabia resumed its operation, easing off supply pressures in the market.

At the stock-specific level, The chip making stocks like Micron Technology (+1.2%), Advanced Micro Devices (+1.4%), Nvidia (+0.3%) were amongst the top gainers from the NASDAQ 100 index as investors switch to bargain hunting mode after the previous day’s fall.

Meanwhile, the AI-hyperscalers and megacap stocks like Amazon Inc, Meta Platforms, Microsoft, Alphabet Inc fell as much as 1.5% on Tuesday as, AI safety concerns seemed to have paused new model launches.

OpenAI pauses Astra launch

OpenAI recently announced canceling launch of GPT 6.0 Astra over safety concerns.The model initially planned for a public launch in October, failed company’s internal safety and alignment standards, prompting the company to scrap the release of its new model.

The slowing down of new AI models and elevated borrowing costs could remain key overhang on the AI-hyperscalers as they have borrowed billions of dollars to fund the AI-infrastructure projects.

Anthropic files for IPO

On the other hand, Anthropic has filed the draft papers for its IPO valuing itself close to $2 trillion, shrugging off the market worries over AI safety. The company has outperformed its closest competitor OpenAI by delivering superior AI models on its Claude AI platform.