Dow Jones Today: Index Dips Despite AI Wave

The value-oriented Dow Jones Industrial Average fell by 0.1%, or about 35 points, as investors brushed off debt-ceiling gridlock and piled into tech stocks.  

Stocks were lifted by a blockbuster earnings report from Nvidia, which soared 25%, nearly becoming one of only a handful of companies to achieve a $1 trillion market capitalization. The chipmaker helped carry the Nasdaq higher by 1.7%, while the S&P 500 was up 0.9%.

After sliding as much as 0.6% in the morning, the Dow rallied after reports that lawmakers were making progress on debt ceiling negotiations.

Microsoft (MSFT) was the Dow’s best performer, rising 3.9% on AI hype. The company also moved to appeal U.K. regulators' decision to block its $69 billion acquisition of Activision Blizzard (ATVI).

Other tech stocks followed, with Cisco Systems (CSCO) and IBM (IBM) rising 1.3% and 0.9%, respectively. Apple (AAPL) and Salesforce (CRM) also moved higher. 

Boeing (BA) gained 0.8% after it announced it had resolved a manufacturing glitch with its 737 Max jet and was on track to meet its delivery goals of 400-450 jets this year. 

JPMorgan Chase (JPM) told 1,000 First Republic staffers, the troubled bank it took over earlier this month, that they would lose their jobs. The cuts reflect about 15% of the bank’s workforce. Shares of JPMorgan moved higher by 0.2%.

Intel (INTC) was the Dow's worst performer, falling 5.5% after Nvidia’s powerhouse earnings cast light on the chasm forming between chipmakers. Nvidia makes graphics processing units (GPUs), which are vital in AI computing, while demand for Intel’s traditional central processing units (CPUs) has stalled.

Walt Disney (DIS) shares fell 0.9% after a Wall Street Journal report detailed its ongoing fight with Comcast (CMCSA), with which it co-owns Hulu, as the two attempt to end their joint ownership of the streaming service.