Small-Cap Stocks and Pharmaceuticals Rise as AI Investment Shifts, Nvidia Declines: Market Updates for Tuesday

Market Shift: Wall Street is experiencing a sector rotation, with a notable increase in small-cap and defensive stocks, particularly in health care, as investors respond to an AI-driven market shift. The Russell 2000 index rose 2%, marking its best three-day performance since November 2024.

Chip Stocks Decline: Major chip manufacturers like NVIDIA and AMD are facing significant declines, with NVIDIA down nearly 4% and AMD falling 7% in one day, amid concerns over competition in the AI chip market.

Tech Giants Perform Well: Despite struggles in the chip sector, tech giants like Alphabet and Apple are seeing their stock prices reach all-time highs, driven by investor optimism regarding their positions in AI and market strategies.

Commodities and Cryptocurrency Update: Gold prices increased slightly, while oil prices fell following geopolitical developments. Bitcoin remained stable but is down 20% for the month, indicating a challenging period for cryptocurrencies.