Wall Street steadies as AI stocks recover some of last week’s sharp losses - AP News

What the report says

The Associated Press reported that U.S. stocks ended Monday with little direction as shares tied to the artificial-intelligence trade stabilized after recent declines, but broader market weakness left major indexes lower or nearly flat. The S&P 500 fell 0.2% to 7,443.28 after its first losing week in three, the Dow Jones Industrial Average lost 307.16 points, or 0.6%, to 51,839.26, and the Nasdaq composite slipped less than 0.1% to 25,508.07.

Several AI-linked names recovered modestly from last week’s pressure. Nvidia rose 0.2%, Sandisk gained 2.7% after a steep weekly drop, and Advanced Micro Devices added 1.6% after announcing an expanded partnership under which Microsoft will use AMD products for AI, including its Helios product later in the year. AP noted that investors remain concerned that AI-related stock valuations may have risen faster than the profits and productivity the technology can ultimately deliver.

Earnings were also in focus. AMC Entertainment surged 26.8% after reporting stronger-than-expected revenue, while Domino’s Pizza gained 2.1% after beating revenue expectations. Alphabet’s upcoming results were highlighted as a potential signal on AI spending and returns.

AP also reported that higher oil prices and rising bond yields weighed on sentiment. Brent crude settled at $89.22, up 1.3%, as the war with Iran continued to disrupt tanker traffic through the Strait of Hormuz. The 10-year Treasury yield rose to 4.59%, increasing pressure on stocks and borrowing costs. Overseas markets were mixed, with South Korea’s Kospi dropping 4.5% while indexes in Hong Kong and Shanghai rose.