Nasdaq closes flat as early AI chip rally fades
The Nasdaq Composite closed nearly flat on Tuesday, rising 0.04% to 26,831.94, after Anthropic's IPO filing revealed plans for $518 billion in cloud and AI infrastructure spending. The Dow Jones Industrial Average was roughly unchanged, while the S&P 500 posted a modest gain. Early gains in AI-related chip stocks, including Nvidia, Micron, and SanDisk, faded within the first 20 minutes of trading, while AMD and Intel extended modest advances. The Dow slipped 0.07% to 51,446.51, and the S&P 500 rose 0.13% to 7,694.21, following Monday's selloff driven by rising oil prices and Treasury yields. The CBOE Volatility Index fell 1.87% to 15.77, suggesting cooling pressure. Investors also watched a White House lunch where President Trump met with AI executives, and upcoming labor data ahead of the Federal Reserve's October meeting.