Download App

[US Stock Weekly Report: Artificial Intelligence Concerns Reignite, S&P 500 Falls for Third Consecutive Week] ⑴ The S&P 500 fell for the third consecutive week, closing down 0.6% due to renewed concerns about the artificial intelligence sector. ⑵ The Dow Jones Industrial Average fell 0.9%, while the tech-heavy Nasdaq Composite fell 2%. ⑶ Momentum strategies remain in the lead, but with October rotation approaching, defensive dividend strategies have become the best-performing factor strategy this year. ⑷ The yield on the 10-year US Treasury note is on track to fall for the fourth consecutive week to around 4.93%, driven by safe-haven demand triggered by the plunge in artificial intelligence stocks. ⑸ In terms of sectors, only communication services and technology performed weakly, while bond alternatives and healthcare successfully dispelled market gloom. ⑹ The communication services sector plunged 8.5%, Meta declined due to increased investment in artificial intelligence infrastructure reaching $37.5 billion, Alphabet suffered a sharp drop due to lower-than-expected advertising revenue and concerns about increased returns from artificial intelligence spending, and Reddit plummeted after warning of a traffic headwind from Google's artificial intelligence search. (7) The technology sector fell 1.8%. Artificial intelligence-related and chip stocks rose on Monday after Anthropic filed for a potentially record IPO, but Intel plunged due to a bleak outlook and cash burn warnings, dragging down the chip sector. The semiconductor index fell slightly by 0.8%. Microsoft opened higher on strong cloud growth forecasts and better-than-expected free cash flow, but ultimately closed slightly lower. (8) The consumer discretionary sector rose 1%. Amazon's stock still fell as increased cash burn from AI spending and disappointing fourth-quarter revenue expectations overshadowed its fastest cloud growth in five years. (9) The energy sector rose 1%, boosted by soaring oil prices. Market concerns about escalating US-Iran conflict and tanker attacks in the Strait of Hormuz could lead to supply shortages. Chevron rose on stronger-than-expected results driven by strong refining operations, while ExxonMobil rose on better-than-expected profits.