DJIA down 0.20% (Il Sole 24 Ore Radiocor) - New York, 26 Jun - US shares opened lower as investors kept a watchful eye on AI titan Nvidia after its recent spate of losses.

The California-based chipmaker, which has boomed over the last year thanks to growing demand for chips that train and run generative AI models, rebounded yesterday to snap a three-day losing streak when it shed more than 13%.

But the stock, which was up more than 2% in premarket trade, opened up just 0.5%, rekindling edginess about the possible creation of an AI bubble.

It has surged more than 1,000% since October 2022.

Investors will be closely monitoring Nvidia rival Micron Technology later to see how its quarterly earnings fare. The stock was flat in early trade.

On the data front new home sales will provide further insight into the health of the US housing market as it struggles to come to terms with stubborn inflation and high interest rates. But most eyes are already shifting to the Federal Reserve's preferred gauge of inflation, the PCE Index, due out later this week.

On the stocks front, shares in Rivian were up 25% after Volkswagen said it intended to invest up to 5 billion dollars in the EV maker while FedEx shares rose 13% after delivering stronger-than-expected sales. General Mills dipped 4.5% after it reported a drop in quarterly sales.

Just after the opening bell the Dow Jones was down 77.27 points, or 0.20%, at 39,034.89, the S&P 500 was down 11.27 points, or 0.21%, at 5,458.03 while the Nasdaq was down 19.33 points, or 0.11%, at 17,698.32.

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(RADIOCOR) 26-06-24 15:52:04 (0482) 5 NNNN