On Thursday, AI-related stocks, including computer chipmakers, experienced declines, impacting global stock markets. Despite some Wall Street strength, U.S. stock indexes showed mixed results. The S&P 500 fell 0.2%, close to its record high set last month. By 11:45 a.m. Eastern time, the Dow Jones Industrial Average increased by 102 points, or 0.2%, while the Nasdaq composite decreased by 0.7%.
Many Wall Street stocks rose after major companies reported better-than-expected quarterly profits. Abbott Laboratories saw an 11.1% rise after revising its annual earnings forecast. UnitedHealth Group also reported higher earnings, resulting in a 3.5% stock increase. Nvidia, being the largest company by value on Wall Street, had a significant impact as its stock dropped by 2.5%, pulling down the S&P 500 value.
Other AI-focused companies also faced losses. Micron Technology’s stock decreased by 5.7%, affecting its annual gain, while SanDisk fell 10.6% but maintained a 500% yearly increase. Western Digital saw a 9% drop yet remained 170% higher for the year.
The declines occurred amid concerns that AI stock prices might be excessively high and that future profitability might be lower than anticipated. Despite positive results from Taiwan Semiconductor Manufacturing Co., seen as an industry indicator, its U.S. stock fell by 2.2%.
In South Korea, AI leaders like Samsung Electronics and SK Hynix drove the Kospi index down 6.4%. The index has experienced volatility recently, with major fluctuations in its rates. A recent interest rate increase by the Bank of Korea added to pressures on Seoul stocks, with higher rates typically controlling inflation but potentially slowing economic growth.
Global oil prices have influenced economic sentiment, rising due to concerns that Middle Eastern conflicts might disrupt supply routes. Brent crude oil briefly surged to over $86 per barrel before settling at $84.75, marking a 0.2% decline.
The bond market saw the 10-year Treasury yield climbing to 4.57% from 4.55%, influenced by mixed economic reports. While U.S. retail spending fell short of expectations, consumer spending, excluding gasoline, remained stable. Additionally, fewer Americans applied for unemployment benefits, suggesting a strong job market. Manufacturing data from the mid-Atlantic region also surpassed expectations.
In international stock trends, European and Asian indexes generally fell, with notable drops in Shanghai and Tokyo at 1.8% and 2.8%, respectively. Contrastingly, Hong Kong’s Hang Seng index rose by 1.3%. Positive sentiment followed approvals by China’s cyberspace regulator permitting Alibaba’s Apple Intelligence AI tool usage, with integration plans underway.