NEW YORK (AP) — Stocks of chipmakers and other winners were firm on Wall Street on Monday. artificial intelligence The boom cuts some of its recent losses.
The S&P 500 rose 0.2% and fell. First losing week in the last 3 weeks This is just the third time since the end of March. As of 1:57 p.m. ET, the Dow Jones Industrial Average was down 186 points, or 0.4%, and the Nasdaq Composite was up 0.5%.
Nvidia rose 0.9%, turning higher after Friday’s decline, the heaviest among the S&P 500, and helping the market recoup some of its losses. SanDisk rose 6.1% after falling 29% last week.
Advanced Micro Devices rose 3.5% after Microsoft announced an expanded partnership to use its products for AI, including a new product, Helios, starting in the second half of this year.
Such stocks are been under pressure for weeks Regarding concerns that prices may rise too high amidst the excitement around AI. On the other hand, companies earn billions of dollars As for revenue Customers pour money into AI chips and data centers. But all that spending could disappear if AI doesn’t produce the benefits and productivity promised.
Wall Street may soon get a hint when the companies spending the most on AI report their latest quarterly results. On Wednesday, Alphabet is scheduled to report spring earnings to investors and provide an update on its AI efforts.
Companies of all types are under pressure to report strong profit growth heading into the spring. They will need to do so to justify large moves in stock prices. Index is nearing recorddespite the recent volatility in AI stocks.
AMC Entertainment rose 24.7% after the movie theater operator reported that its latest quarter’s revenue beat analysts’ expectations. He also said some theaters in Los Angeles and other cities screened “The Odyssey” for more than 85 consecutive hours from Thursday through Sunday to meet demand.
Domino’s Pizza rose 1.9% after spring sales beat expectations. CEO Russell Weiner said orders are increasing in both the company’s takeout and delivery businesses, even as the industry as a whole continues to “face consumer demand pressures.”
Another restaurant chain, Jersey Mike’s, has begun a roadshow to drum up interest in its stock, which it plans to sell for $21 to $25 per share on the New York Stock Exchange in an initial public offering.
The company and other companies face pressure to sell to struggling American households. Inflation remains highmainly thanks high gas prices. The average cost of a gallon of gasoline in the United States is once again over $4.
It follows the rise in crude oil prices. The price of a barrel of Brent crude oil has soared recently after falling below $72 earlier this month, almost returning to levels before the war with Iran began. Fighting continues in the Middle East.
On Monday, prices ranged between about $86 and $91. It was last up 0.9% at $88.90.
The war with Iran has prevented the use of oil tankers. Strait of Hormuz Oil prices rise as crude oil is shipped from the Persian Gulf to customers. Just 127 ships passed through the strait in the week to Sunday, according to S&P Global, a drop of nearly 50% from the previous week.
Concerns over high oil prices and higher inflation have pushed yields on U.S. Treasuries higher in the bond market, threatening to slow the economy and lower the prices of stocks and other investments.
The yield on the 10-year U.S. Treasury rose to 4.60% from 4.55% late Friday, up from just 3.97% before the Iran war. Rising yields have already pushed up the average interest rate on a 30-year mortgage. Highest level in almost a year.
In overseas stock markets, indexes were mixed in Europe.
Things were more volatile in Asia, where South Korea’s Kospi fell 4.5%. The company is at the center of big swings in AI stocks because it is controlled by two high-tech companies, Samsung Electronics and SK Hynix.
Stock prices were strong in China, with indexes rising 2.4% in Hong Kong and 0.9% in Shanghai.
___
AP Business Writers Chan Ho-him and Matt Ott contributed to this report.
