AI earnings impress, as the U.S. stock market edges toward record highs.
On Wednesday, the S&P 500 rose 0.3%. After setting a record high last Friday, it notched its first positive close. The Dow Jones Industrial Average slipped 21 points, down less than 0.1%, while the Nasdaq Composite gained 0.5%.
Artificial intelligence stocks became the main driver of the market. Super Micro Computer reported quarterly earnings per share 84% above analysts’ expectations, sending its shares soaring 19%. Its next-quarter earnings and revenue forecasts also exceeded expectations. CoreWeave posted better-than-expected revenue for the quarter, narrowed its loss, and its shares jumped 19.3%. Its CEO said that as large enterprises adopt AI, customer demand is accelerating. CoreWeave provides customers with NVIDIA ($NVDA) AI chips; NVIDIA shares rose 3%, becoming the largest single force pushing the S&P 500.
Meanwhile, a report showed that last month U.S. consumers paid 3.4% more than a year earlier for gasoline, food groceries, and other everyday living costs. While still above ideal levels, it was below the 3.5% inflation rate in June. This slowdown helped drive bond yields lower, with the 10-year U.S. Treasury yield falling from 4.70% on Tuesday to 4.68%. However, yields remain far above the 3.97% level before the Iran war, when concerns about oil prices and inflation surged. On Wednesday, oil prices moved slightly, with Brent crude up 0.1% to $88.98 per barrel.
Higher borrowing costs have pushed long-term mortgage rates to a one-year high, hurting the housing sector. Homebuilders’ shares dropped sharply on Wednesday—for example, D.R. Horton fell 3.3%, PulteGroup dropped 2.5%, and building-materials seller Builders FirstSource slid 3.6%.
Overseas, European markets fell while Asia was mixed. South Korea’s Kospi surged 3.7%, driven by that market’s dominance by two tech giants, Samsung Electronics and SK hynix. Their stock price swings have been closely tied to AI-related shares.
Next, investors will need to watch for continued validation of the durability of AI investment returns.
On Wednesday, the S&P 500 rose 0.3%. After setting a record high last Friday, it notched its first positive close. The Dow Jones Industrial Average slipped 21 points, down less than 0.1%, while the Nasdaq Composite gained 0.5%.
Artificial intelligence stocks became the main driver of the market. Super Micro Computer reported quarterly earnings per share 84% above analysts’ expectations, sending its shares soaring 19%. Its next-quarter earnings and revenue forecasts also exceeded expectations. CoreWeave posted better-than-expected revenue for the quarter, narrowed its loss, and its shares jumped 19.3%. Its CEO said that as large enterprises adopt AI, customer demand is accelerating. CoreWeave provides customers with NVIDIA ($NVDA) AI chips; NVIDIA shares rose 3%, becoming the largest single force pushing the S&P 500.
Meanwhile, a report showed that last month U.S. consumers paid 3.4% more than a year earlier for gasoline, food groceries, and other everyday living costs. While still above ideal levels, it was below the 3.5% inflation rate in June. This slowdown helped drive bond yields lower, with the 10-year U.S. Treasury yield falling from 4.70% on Tuesday to 4.68%. However, yields remain far above the 3.97% level before the Iran war, when concerns about oil prices and inflation surged. On Wednesday, oil prices moved slightly, with Brent crude up 0.1% to $88.98 per barrel.
Higher borrowing costs have pushed long-term mortgage rates to a one-year high, hurting the housing sector. Homebuilders’ shares dropped sharply on Wednesday—for example, D.R. Horton fell 3.3%, PulteGroup dropped 2.5%, and building-materials seller Builders FirstSource slid 3.6%.
Overseas, European markets fell while Asia was mixed. South Korea’s Kospi surged 3.7%, driven by that market’s dominance by two tech giants, Samsung Electronics and SK hynix. Their stock price swings have been closely tied to AI-related shares.
Next, investors will need to watch for continued validation of the durability of AI investment returns.