[New York Stock Market Morning Briefing] 'AI bubble' concerns continue for second day… New York market closes lower

Nvidia·Oracle continue to fall, Intel soars

Experts: "Tech stocks overheated… clear valuation problem"

Investors watch employment and inflation indicators and shutdown risk

On Wall Street, concerns about a bubble in stocks related to artificial intelligence (AI) continued for a second day. The pressure came as AI bellwethers Nvidia and Oracle extended their weakness for a second day.

On the 24th (local time), the S&P500 index closed at 6,637.97, down 0.28%, and the Nasdaq index finished trading at 22,497.86, down 0.34%. The Dow Jones index ended the session at 46,121.28, down 171.50 points, or 0.37%.

That day Nvidia fell about 1%, extending the decline that began the previous day. Earlier this week Nvidia announced a $100 billion partnership with OpenAI, but investor unease persisted after the announcement. The concern is that Nvidia fulfilled a large investment to OpenAI on the premise that OpenAI would purchase the company's graphics processing units (GPU) in the future. Another AI company, Oracle, also showed a second consecutive day of declines, falling nearly 2% on the day.

Meanwhile, the Nasdaq reduced some of its losses toward the close, as Intel's stock jumped more than 6%. Bloomberg, citing sources, reported that Apple is exploring an investment in Intel. This news came shortly after Nvidia announced a few days ago that it would invest $5 billion in Intel. By contrast, Micron Technology's stock fell nearly 3%, as its earnings and outlook failed to satisfy investors.

Jay Hatfield, CEO of Infrastructure Capital Advisors, told CNBC, "Tech stocks seem somewhat overheated," adding, "There is no clear reason to support the bull market." He added, "It does not mean that no one uses AI or that the world is ending, but right now this is clearly a valuation problem." He also noted, "This situation may continue for a few more days, and seasonal weakness may also be reflected." Currently, however, the S&P500 index is up about 3% so far this month, which stands in sharp contrast to the average September decline of -4.2% over the past five years.

Investors are closely watching the weekly initial jobless claims to be released on the 25th (local time) and the personal consumption expenditures (PCE) price index to be released on the 26th. The risk of a government shutdown as federal funding expires is also cited as a factor increasing market uncertainty. President Donald Trump canceled a meeting with Democratic leaders this week, a decision seen as reducing the chances of reaching an agreement to avoid a shutdown ahead of the September 30 deadline.

New York=Park Shin-young, correspondent nyusos@hankyung.com