The S&P 500 dropped 1% and was headed for its worst day since the start of the month and a fourth straight loss after a recent all-time high. The Dow was down about 0.3% and the Nasdaq fell 1.8%. Nvidia declined 3.7% and Palantir plunged 9.3%, following prior large moves, as investors weighed valuation excesses and uncertain returns. A study from MIT indicated most corporations see no measurable return yet from generative AI investments, and critics say AI enthusiasm pushed some stocks too high too fast. Mixed retail earnings kept the broader market in check, with TJX and Lowe's posting stronger results.
One possible contributor to the swoon was a study from MIT's Nanda Initiative that warned most corporations are not yet seeing any measurable return from their generative AI investments, according to Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management. But such companies have also been facing criticism for a while that their stock prices simply shot too high, too fast amid the furor around AI and became too expensive.
TJX, the company behind the TJ Maxx and Marshalls stores, climbed 4.4% after beating analysts' forecasts for profit and revenue. It also raised its forecast for profit over its full fiscal year, while CEO Ernie Herrman said TJX is seeing "strong demand at each of our U.S. and international businesses" and that its current quarter is off to a strong start. Lowe's added 0.9% after the home-improvement retailer delivered a profit for the latest quarter that topped analysts' expectations.
Collection
[
|
...
]