Lates News

The S&P 500 was little changed on Friday. Although the market remains concerned about the sustainability of the AI investment boom, signs that the Federal Reserve may keep interest rates unchanged this month boosted investor sentiment. However, the Nasdaq 100 fell 1%. After cloud computing service provider CoreWeave's stock price plunged, market concerns about the AI industry ecosystem continued to weigh on tech stocks. Andrew Tyler, head of global market intelligence at JPMorgan, said: "Fed Chair Warsh's speech at the IMF last night reinforced market expectations that rates will remain unchanged in October. We are still watching for selective buy-the-dip opportunities." Market worries about how long the AI boom can last have led to continued volatility in related stocks. A large part of the pressure facing Wall Street comes from global bond yields hovering near 20-year highs, which has pushed up financing costs and raised concerns about whether AI spending can remain resilient. Tech companies are especially vulnerable to rising rates because many companies' valuations depend on expected profits that will only be realized years in the future.