By Reuters
The main U.S. stock indexes were mixed on Wednesday as investors took a breather ahead of Nvidia鈥檚 earnings, which are expected to test the momentum of Wall Street鈥檚 AI-driven rally.
The chip major was at the forefront of the market recovery after April鈥檚 lows, crossing the $4-trillion market capitalization mark in July to become the world鈥檚 largest company as investors continued to bet on the global demand for artificial-intelligence infrastructure.
Traders worry the technology sector – which makesup nearly 50% of the S&P 500 – might be overvalued. Valuations of the benchmark index are well above long-term averages, according to data compiled by LSEG.
The concerns weighed on tech stocks last week, after OpenAI CEO Sam Altman spoke of a potential bubble and a study from the Massachusetts Institute of Technology showed AI tools boosted individual productivity, not corporate earnings.
Nvidia slipped 1% ahead of its earnings, expected after markets close, while the broader S&P 500 tech sector los