US stocks rise and trim their losses for June

NEW YORK (AP) — U.S. stocks rose Tuesday and trimmed their losses in what had been a rocky June.

The S&P 500 gained 0.8%, though it still fell to its first losing month following two fabulous ones. The Dow Jones Industrial Average added 136 points, or 0.3%, to its record, and the Nasdaq composite climbed 1.5%.

The main reason for the past month’s weakness was a fall to Earth for stocks in the artificial-intelligence industry. After soaring to tremendous heights in the frenzy around AI, such stocks came under pressure because of worries that they shot too high. That’s a big deal for all investors because AI stocks have grown into some of Wall Street’s largest and most influential, pulling indexes behind them.

AI stocks were firmer Tuesday, and Nvidia was the strongest force lifting the S&P 500 after rising 2.6% and trimming its loss for the month. That was even though the majority of stocks within the index fell Tuesday.

Microsoft, which is investing heavily in AI, rose 1.2% to cut its loss for the month to 17.2%. Oracle, though, slipped 0.8% to widen its drop for June to 35.1%. It’s another company contending with concerns that AI may not yield enough productivity and profits to make all the big spending worth it.

All told, the S&P 500 rose 58.93 points to 7,499.36. The Dow Jones Industrial Average added 136.46 to 52,319.20, and the Nasdaq composite climbed 393.58 to 26,213.72.

Outside of AI, the economy seems to be rumbling along, even though U.S. households are still feeling sour about it. A report released in the morning said that U.S. employers were advertising many more job openings at the end of May than economists expected, the latest signal that the job market remains resilient.

But a second report said that confidence among U.S. consumers improved by less than economists expected. More Americans are saying it’s hard to get a job, according to a survey by the Conference Board, even with data suggesting continued hiring.