US Stocks Weighed by AI Infrastructure
US stock indices extended their divergence on Friday as markets reassessed risks in the AI trade ahead of likely rate hikes by the Federal Reserve. The S&P 500 and the Dow were marginally above the flatline, while the Nasdaq 100 dropped 0.5%. CoreWeave was nearly 7% lower, extending this week's losses to 18% to underscore fresh credit risk flare-ups for AI infrastructure companies. The sector was recently pressured by relatively tame revenue figures from Anthropic and the outlook for higher interest rates on debt-ridden companies. Data released this week showed higher consumer inflation and soaring producer prices, both headline and core. Micron, AMD, and Marvell fell by up to 3%. Meanwhile, Tesla rose 1% and SpaceX fell 3% after Tesla unveiled its Roadster car that uses SpaceX thrusters, spurring merger speculation between CEO Elon Musk's companies.
US stock indices extended their divergence on Friday as markets reassessed risks in the AI trade ahead of likely rate hikes by the Federal Reserve. The S&P 500 and the Dow were marginally above the flatline, while the Nasdaq 100 dropped 0.5%. CoreWeave was nearly 7% lower, extending this week's losses to 18% to underscore fresh credit risk flare-ups for AI infrastructure companies. The sector was recently pressured by relatively tame revenue figures from Anthropic and the outlook for higher interest rates on debt-ridden companies.
Data released this week showed higher consumer inflation and soaring producer prices, both headline and core. Micron, AMD, and Marvell fell by up to 3%. Meanwhile, Tesla rose 1% and SpaceX fell 3% after Tesla unveiled its Roadster car that uses SpaceX thrusters, spurring merger speculation between CEO Elon Musk's companies.