Wall Street drifts after tech stocks keep swinging

The U.S. stock market opened Wednesday with modest gains and losses as technology stocks continued their volatile performance. The S&P 500 remained nearly unchanged after an early drop of 0.8%, avoiding a second consecutive decline in three weeks. The Dow Jones Industrial Average fell 268 points (0.5%), and the Nasdaq composite dipped 0.1% by 10:30 a.m. Eastern time. AI-driven stocks remained unpredictable, with Super Micro Computer plunging 14.1% after announcing a $7 billion stock and convertible preferred stock sale. Other AI-linked shares fluctuated sharply, including Micron Technology, which rebounded from an early 4% loss to a 1.1% gain after recent wild swings. Despite the instability, Micron’s stock is still up 231.2% year-to-date. Semiconductor-related stocks led the market higher, with KLA rising 5.9% and Applied Materials up 6%, helping offset broader weakness. Earlier inflation data showed consumer prices rising to their highest level in three years, though the increase matched economists’ expectations. The core inflation measure also rose less than forecast, easing bond market pressures. Treasury yields softened slightly, with the 10-year yield dropping to 4.52% and the 2-year yield falling to 4.11%. Traders adjusted bets on Federal Reserve rate hikes after the inflation report, though expectations remain for at least one increase this year. Oil prices also fluctuated, rising 1.3% to $92.60 per barrel amid hopes of a U.S.-Iran deal to reopen the Strait of Hormuz.