"The Vanguard S&P 500 ETF ( NYSEMKT: VOO) had its worst day in months on Thursday, falling 1.6%, and the selloff appears likely to continue as Friday dawns, with the ETF down another 1% premarket. And why? Your guess is as good as anyone else's. Theories range from worries that artificial intelligence isn't generating the efficiencies it was supposed to (such that investments in AI aren't paying off for companies using it) to fears that AI stocks have been bid up to unsustainable valuations."
"Earnings Not all the news is bad, however - not even in AI. S&P 500 component and semiconductor chip manufacturing equipment maker Applied Materials ( Nasdaq: AMAT), for example, beat earnings by six cents last night, reporting a fiscal Q4 profit of $2.17 per share on sales of $6.8 billion, also better than expected. Applied also guided investors to expected fiscal Q1 2026 revenue of $6.35 to 7.35 billion per share, ahead of Wall Street forecasts."
The Vanguard S&P 500 ETF plunged 1.6% with another 1% drop premarket, reflecting broad selling pressure. Market theories include doubts about AI-driven efficiency gains and concerns that AI-related stocks are overvalued. Bitcoin fell about 2% and gold futures declined about 3.5%, signaling widespread risk-off sentiment. Applied Materials beat Q4 earnings, reported $2.17 per share on $6.8 billion in sales, and guided fiscal Q1 revenue above expectations, yet its shares fell over 6% premarket. Ballard Power posted narrower losses and stronger revenue but dropped roughly 9%, while Spire Inc. missed earnings.
Read at 24/7 Wall St.
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