"Investor sentiment was dominated by renewed concerns that the rapid growth in artificial intelligence may not yet translate into profits sizable enough to justify significant corporate spending. These worries weighed heavily on technology stocks, with the Nasdaq Composite seeing the sharpest declines. The S&P 500 fell roughly 4.4% from its late-October high, while mid- and small-cap indexes also posted losses, though to a lesser extent."
"One of the most closely watched events of the week was NVIDIA's quarterly earnings. The company reported record revenue driven by robust demand for its AI chips and delivered a strong outlook for the coming quarter. While markets initially reacted positively, sentiment reversed by midday, highlighting ongoing uncertainty around the sustainability of AI-driven growth. Labor market data added complexity to the macro picture. The delayed September jobs report showed a stronger-than-expected gain of 119,000 jobs, but unemployment ticked up to 4.4%, reaching a four-year high."
US equity markets ended the week lower despite a mix of encouraging corporate earnings and stronger-than-expected economic reports. Renewed concerns that rapid AI growth may not yet translate into sizable profits weighed on technology stocks, with the Nasdaq suffering the heaviest declines. The S&P 500 slipped about 4.4% from its late-October high while mid- and small-cap indexes also fell. NVIDIA reported record revenue and a strong outlook, but midday sentiment reversed, underscoring uncertainty about AI sustainability. September payrolls rose by 119,000 and unemployment rose to 4.4%. Markets now focus on the Federal Reserve's December meeting and potential rate moves.
Read at London Business News | Londonlovesbusiness.com
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