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Most of Wall Street rises, but sinking AI stocks send it lower for the week
AP News • • business
Key Points:
- U.S. stock markets saw modest gains as oil prices fell back to pre-Iran war levels, benefiting companies with high fuel costs like American Airlines, while health care stocks rose on positive European Medicines Agency recommendations.
- Despite overall market support, declines in artificial intelligence (AI) stocks, including a 6.7% drop for Micron Technology, tempered gains due to concerns about profit sustainability and rising memory prices affecting consumer demand.
- SpaceX's stock experienced volatility, swinging from a 2.9% drop to a 3.5% gain before closing slightly up, reflecting broader uncertainty in AI-related investments following its recent IPO surge.
- ON Semiconductor suffered the largest S&P 500 loss with a 23.7% drop after announcing a $7 billion all-stock acquisition of Synaptics, while Treasury yields eased alongside inflation expectations.
- Asian markets opened sharply lower, led by a 12.5% plunge in Softbank Group shares amid reports that OpenAI may delay its IPO, contributing to significant declines for major tech firms like SK Hynix and Samsung Electronics.
