US stocks lack fuel – but these AI stocks are still rising

US stock markets experienced a downturn on Wednesday, with major indices reversing earlier gains. The Nasdaq-100, after briefly touching a new record high, fell into negative territory as investors engaged in profit-taking. The Dow Jones Industrial Average lost 0.80 percent, and the broader S&P 500 also saw a decline, threatening its nine-day winning streak.

Investor sentiment was dampened by escalating tensions between the United States and Iran, which raised concerns about the prospects for a peace agreement and contributed to rising oil prices. Adding to the uncertainty, US President Donald Trump reintroduced tariff threats against approximately 60 countries, citing concerns over imports produced with forced labor. These threats could impose additional tariffs ranging from 10 to 12.5 percent on goods from regions including the European Union, the UK, Switzerland, Canada, and China.

Economic data released on Wednesday painted a mixed picture. While the ADP report indicated stronger-than-expected job creation in the private sector for May, and the US services sector sentiment improved, the broader market lacked upward momentum. Despite the general weakness, a few technology stocks, particularly those associated with artificial intelligence, continued to perform well. Marvell Technology saw a significant rally, building on recent gains, while Intel shares recovered some ground following recent setbacks.