Traders look past faltering AI sector as bonds climb – US Market Wrap
Stocks rebounded as increases in most major industries outweighed disappointing earnings from several tech titans. Bond prices rose on a dismal rating on US services.
Some 350 businesses in the S&P 500 climbed, erasing previous losses. Nvidia led gains among chipmakers. However, a barometer of the “Magnificent Seven” megacaps fell 1.5% after Alphabet’s results dropped Google’s parent stock to its lowest point in more than a year. AMD fell 6.3% on a poor outlook. Treasury yields have fallen to 2025 lows. The dollar declined.
The emergence of DeepSeek as an AI threat last week cost Nvidia half a trillion dollars in value. Last night, Alphabet’s findings aroused concerns about its capital spending among the large technologies that have driven the bull market. While the “Magnificent Seven” have accounted for more than half of the S&P 500’s gains in the last two years, their profit growth is slowing.
Wall Street has been whipsawed by uneven economic statistics, trade tensions, and doubts about whether billions of dollars spent on artificial intelligence will begin to pay off.
