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This is an edition of the Markets P.M. newsletter, a recap of the day’s most important markets moves, delivered after the closing bell. If you’re not subscribed, sign up here.
What Happened in Markets Today
Chip stocks rose. The PHLX Semiconductor Sector Index ended more than 5% higher, clawing back some of its recent losses. Chip maker Intel was a standout, rising 8.6% ahead of its earnings report Thursday. Chip stocks have been under pressure lately as investors fret about low-cost Chinese AI models that look like strong performers. Their success could weaken demand for the expensive chips needed for cutting-edge models from companies like Anthropic and OpenAI. Chip stocks remain down about 3% in the past five trading days.
Oil prices rose. The simmering U.S.-Iran conflict pushed oil higher. Brent crude settled at $91.01 a barrel, up 2% on the day after hopes for quick progress toward a ceasefire waned. The U.S. has kept up attacks on Iran in the past two weeks, while Iranian strikes over the weekend killed U.S. servicemembers in Jordan.
General Motors rose 4.9%. The auto giant reported revenue for its latest quarter that bested Wall Street’s expectations, and raised its full-year adjusted profit outlook. While the company is selling fewer cars, it is making more money due to sales of larger, higher-priced models that are more lucrative. Tesla’s results on Wednesday will give investors another gauge of the auto market’s health.
Stock indexes rose. The S&P 500 climbed 0.9%, and the tech-heavy Nasdaq was up 1.3%. The Dow Jones Industrial Average gained 0.7% to end at 52,225 points.
Markets at a Glance
One Big Story
China’s recent progress in the AI race is alarming top executives. Chinese companies including Alibaba and the startup Moonshot AI have released new AI models in recent days that they claim stand toe to toe with the best the West has to offer. The advances are reigniting debate about what the U.S. should do, if anything, about the rise of cheaper Chinese AI models. The U.S. has in the past tried to limit Chinese technological advances by restricting exports of chips to the country.
What’s Coming Up
Google reports quarterly earnings on Wednesday, providing the latest barometer of AI spending and the health of the boom.Tesla reports results following strong quarterly numbers from automaker General Motors on Tuesday.International Business Machines is also set to report after issuing a rare profit warning last week that sank its stock price.
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About Us
Markets P.M. catches you up on the day’s most important markets moves, delivered after the closing bell. This email was written by Asa Fitch, a writer for Heard on the Street, The Wall Street Journal’s home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here’s how to submit.
