Arabic version: انتعاش الذكاء الاصطناعي يدفع مايكروسوفت وإيتون وسيلزفورس للصعود
According to Cnbc, the stock market rose since the previous CNBC Investing Club Monthly Meeting as the artificial intelligence trade returned. The tech-heavy Nasdaq gained 2.7% over the period, while the S&P 500 advanced 2.6% and the Dow Jones Industrial Average rose 2.3%. The move occurred alongside volatility, including the forced unwinding of Situational Awareness, a highly leveraged AI-focused hedge fund.
Microsoft was the portfolio’s strongest performer, rising 22.8%. Its quarterly results, released after the bell on July 29, showed strong growth, relatively disciplined capital-spending expectations and $19 billion in free cash flow. The report increased investor confidence that its AI investments are producing meaningful returns.
Eaton climbed 16.1% after reporting a strong quarter on July 31. The electrical equipment supplier beat top- and bottom-line expectations, raised its full-year organic-growth and earnings outlook, and reported surging orders and backlog across its electrical businesses. Salesforce gained 12% as investors returned to software stocks after concerns about AI disruption to software-as-a-service business models.
On the weaker side, Linde fell 7.9% despite beating earnings and revenue expectations. Investors focused on lighter guidance and pressure on its healthcare margins from higher labor costs and insurance reimbursement changes. Apple declined 9.3% after quarterly results on July 30, as higher memory costs, supply constraints and softer guidance outweighed beats on revenue and profit expectations.
Meta Platforms dropped 12.9% after its July 29 earnings revived concerns over AI spending. Its advertising business remained strong, but investors focused on a softer revenue outlook, higher capital spending and an approximately 91% fall in quarterly free cash flow. The source said Meta CEO Mark Zuckerberg did little during the earnings call to persuade Wall Street that the investments would generate meaningful returns soon.
