Nasdaq Surges as AI Stocks Rebound; Dow Dips Amid Economic Data Uncertainty

The Nasdaq jumped on Tuesday, driven by gains in Nvidia and other AI-linked stocks after recent selloffs. While the Dow slipped from its one-month high, investors are keenly awaiting key inflation data for hints on the Federal Reserve's monetary policy path. Consumer confidence data remained in line with forecasts.

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) *

Fed's Bowman says rates should remain steady for some time *

Consumer confidence data in line with forecasts *

Spirit AeroSystems falls after report of Boeing deal *

Indexes: Dow down 0.38%, S&P up 0.16%, Nasdaq up 0.66% (Updated at 10:03 a.m. ET/1403 GMT)

By Ankika Biswas and Lisa Pauline Mattackal June 25 (Reuters) -

The Nasdaq jumped on Tuesday as Nvidia and other AI-linked stocks rose after bruising selloffs, while the Dow slipped from a one-month high as investors awaited key inflation data this week for further cues on the Fed's monetary policy path. AI chip firm Nvidia advanced 3.3%, recouping some losses after three consecutive declining sessions. The stock has still lost 11% since a record high close last week.

The U.S. listing of Taiwan Semiconductor Manufacturing , Broadcom and Qualcomm were up between 0.5% and 1.6%, while an index of semiconductor stocks gained 0.8% after slumping over 3% in the previous session. The S&P 500 technology sector gained 1.0%, recovering some of Monday's losses.

Sectors including utilities and energy pulled back after rising in Monday's session, while the industrial and material sectors led declines. The Dow pulled back from a one-month high, dragged down by losses in consumer discretionary and industrial stocks, while the small-cap index also lost 0.5%.

Technology and other growth stocks have driven the S&P 500 and the Nasdaq to record highs this year, but the value-focused Dow continues to significantly lag the other indexes, causing some to raise concerns over the sustainability of equity strength. The June reading of the U.S. consumer confidence index slipped to 100.4 from a revised 101.3 the month prior, but was in line with expectations.

"If the economic data continues to weaken, equities might have to take a breather unless and until a September rate cut gets more likely," said John Velis, Americas macro strategist at BNY Mellon. Market participants see 61% odds of a 25-basis point interest rate cut in September, and are eyeing around two cuts by the end of the year, according to LSEG's FedWatch data.

The most closely watched event of the week will be the latest reading of the personal consumption expenditures (PCE) price index - the Fed's preferred inflation gauge - on Friday. Fed Governor

Michelle Bowman said she still does not forecast any reduction in the U.S. benchmark interest rate this year.

At 10:03 a.m. ET, the Dow Jones Industrial Average was down 150.00 points, or 0.38%, at 39,261.21, the S&P 500 was up 8.94 points, or 0.16%, at 5,456.81, and the Nasdaq Composite was up 115.77 points, or 0.66%, at 17,612.58. Among others, Spirit AeroSystems dropped 5.3%. A report showed Boeing has offered to acquire the airplane fuselage maker in a deal funded mostly by stock that values its key supplier at about $35 per share. Boeing shares slipped 1.7%.

Carnival Corp gained 3.7% after raising its annual profit forecast, banking on higher prices for its itineraries and sustained demand for cruise holidays. Trump Media & Technology Group rose 5.1%, extending Monday's strong gains. The company had announced it expected $69.4 million in proceeds from cash exercise of warrants.

Declining issues outnumbered advancers for a 2.07-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.66-to-1 ratio on the Nasdaq. The S&P index recorded 11 new 52-week highs and two new lows, while the Nasdaq recorded 18 new highs and 80 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)