U.S. Stocks Open Mixed on Tuesday; IBM Plunges 22% on Earnings Miss, HSBC Downgrade and AI Competitive Pressure
Tiger Newspress07-14 21:33
The S&P 500 rose on Tuesday after June inflation data came in weaker than expected, though the index's gain was kept in check as traders assessed rising oil prices and a slew of corporate earnings releases.
The broad market index was up 0.2%, while the Nasdaq Composite advanced 0.5%. The Dow Jones Industrial Average fell 88 points, or 0.2%.
IBM's preliminary second-quarter revenue forecast came below Wall Street estimate on Tuesday, as customers prioritized spending on AI infrastructure, including servers, storage and memory purchases, sending its shares slumping 22% in market trading.
The results reflect an industry-wide shift in technology spending toward AI infrastructure, reducing budgets for traditional software.
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