US stocks close in mostly positive territory; tech stocks slide

ISTANBUL

US stocks ended Tuesday mostly with gains amid hopes for an end to the longest government shutdown in history and declines in tech stocks, mainly led by Nvidia.

The Dow Jones Industrial Average rose 1.18%, or 559.33 points, to close at an all-time high of 47,927.96, and the S&P 500 increased 0.21%, or 14.18 points, to 6,846.61.

On the other hand, the tech-heavy Nasdaq composite dropped 0.25%, or 58.87 points to end the day at 23,468.30.

The mostly-positive course followed the US Senate's passage of a bill to finance the federal government until Jan. 30 and end the longest government shutdown in American history.

The bill was moved to the House of Representatives after passing 60-40 with support from almost all Republicans and a few Democratic senators. It will be sent to President Donald Trump to be signed into law if it passes the House.

Many important economic indicators such as the consumer and producer price indices, which were supposed to be released this week, are no longer being released by federal agencies because of the shutdown.

Meanwhile, Trump said late Monday that the US and Switzerland are in talks to reach a trade deal that would slash the 39% tariff rate on Swiss goods entering the US.

He told reporters in the Oval Office that White House officials are “working on a deal to get the tariffs a little lower" with Switzerland.

On the other hand, concerns over the overvaluation of tech and AI stocks seemed to have increased after Japanese tech giant SoftBank announced that it sold its entire stake in chip giant Nvidia for $5.83 billion

After SoftBank's announcement, Nvidia's shares slid 3%, Oracle dropped 1.94%, Micron Technology slipped 4.8% and Palantir Technologies fell 1.37%.

AMD's stock was down 2.65% even though the chip firm's CEO Lisa Su said Tuesday that over the next three to five years, the firm's overall revenue growth would increase by roughly 35% annually due to the "insatiable" demand for AI chips.

AI cloud infrastructure provider CoreWeave's shares plummeted 16.3% after the firm's guidance missed expectations.