Shares of technology companies rose as semiconductor companies rebounded.
Shares of International Business Machines tumbled, losing one-quarter of their value, after Chief Executive Arvind Krishna warned investors that the weakness in IBM's infrastructure arm was worse than anticipated, driven by a shortfall in demand for a key mainframe product designed for the artificial intelligence age. The company expects infrastructure revenue to fall 7%, after previously anticipating a low-single-digit decline.
Chinese tech firm Dongfang Suanxin, or DFSX, introduced its self-designed AI chip, intensifying competition with U.S. rivals.
Nvidia, the leading AI chip maker, rose by 4% as fears about the sustainability of the AI boom subsided.
Gov. Kathy Hochul is banning large data-center construction for up to a year, making New York the latest state to confront the rollout of sites powering the artificial-intelligence boom.
