Market Update: Stocks Decline Amid AI Sell-Off
Stocks saw a downturn as the trading day came to a close, particularly in AI-related shares, as investors chose to sell off positions. Major companies like Nvidia, Apple, and Oracle all ended the day lower, while Alphabet is poised to end its winning streak at seven weeks. Among the “magnificent seven,” only Microsoft, Meta, and Tesla managed to finish in the green.
Interestingly, Intel’s stock has been on the upswing, boosted by reports indicating that the company is pursuing investment from Apple. Since the Trump administration acquired a 10% stake in Intel last month, shares have skyrocketed nearly 33%. This marks the company’s best monthly performance since March 2023.
On the flip side, private equity firms KKR and Carlisle experienced their toughest day in four months, with KKR shares dropping by 6% and Carlisle by nearly 5%. Other firms like Apollo Global, Blackstone, and TPG also faced declines. The rising concerns over default rates are thought to be driving these losses among alternative asset managers.
In the medical sector, a U.S. trade investigation has begun into personal protective equipment and medical devices, adding further pressure on stocks like Abbott Labs and Intuitive Surgical. Despite Abbott’s shares climbing 18% this year, they saw minimal movement during after-hours trading. Intuitive Surgical, on the other hand, experienced a slight dip of less than 1% post-market, with prices down roughly 15% since the year began.
Looking ahead, Costco is set to report its quarterly results after the market closes on Thursday. Shares climbed nearly 5% this year, but remain below the S&P 500’s average increase of 15.8%. If current trends hold, 2023 could mark Costco’s worst performance year since 2022.
Meanwhile, the energy sector has been the standout in the S&P this week, thanks to a continuous rise in oil prices over the past seven weeks. Halliburton is leading the charge, aiming for its best week since January, with shares up over 8%. However, despite the recent gains, its stock has dropped 18% this year.
