Arabic version: تفاقم موجة بيع أسهم الذكاء الاصطناعي مع بيانات التضخم التي حفّزت تدوير الاستثمارات
According to Cnbc, the AI trade and hotter-than-expected inflation data rattled the stock market last week, while bank earnings and investor rotation into less technology-dependent sectors offered some support. The Nasdaq dropped 4.5%, its worst weekly decline since June, while the S&P 500 fell 2%. The Dow gained 0.7% as investors moved into healthcare, consumer staples and other defensive areas.
The sell-off accelerated after consumer inflation for September rose 3.7% from a year earlier, above the 3.6% expected. Core inflation was also slightly hotter than anticipated. Producer prices then rose 1.3% for the month and 6.3% annually, the largest monthly and annual gains since December 2022 and March 2022, respectively. Elevated oil prices were cited as one factor adding pressure to inflation and borrowing costs.
Semiconductor and AI-related shares were among the hardest hit. Micron, Sandisk, Western Digital and Seagate fell after Chinese competitor CXMT reported progress on a more efficient chip structure. The iShares Semiconductor ETF posted a ninth consecutive losing session, its longest streak in more than a decade, while the VanEck Semiconductor ETF lost 10% for the week. CoreWeave fell 25% after concerns over debt and AI infrastructure financing intensified.
Not all technology companies fared as poorly. Meta Platforms rallied following the release of Muse Wonder and Muse Wonder Full AI models, while Microsoft reached a record closing high Tuesday for the first time in nearly a year. Salesforce gained 5% during the week. Meta and Microsoft nevertheless ended the week down more than 1% each.
Bank results also drew attention. Goldman Sachs reported equities trading revenue up 72%, investment banking fees up 21% and stronger-than-expected asset and wealth management. Wells Fargo beat earnings estimates but missed on revenue, with net interest margin stabilizing at 2.43%. Bank of New York beat revenue and earnings expectations and raised its full-year outlook.
