On Friday, the S&P 500 fell as major AI-related stocks, including Dell and Nvidia, recorded substantial losses. Investors closely analyzed inflation data revealing that tariffs have begun influencing prices. Dell’s shares plummeted by almost 9% due to high manufacturing costs for AI-optimized servers overshadowing the company’s promising demand forecasts.
Nvidia, another key AI player, saw its shares dip 3.4%, marking its third consecutive day of decline. Although its recent quarterly report fell short of expectations, it confirmed robust spending on AI infrastructure. Despite an increase in U.S. consumer spending in July, signs of domestic demand do not deter expectations of Federal Reserve interest rate cuts amid weakening labor market conditions.
While some sectors like healthcare and consumer staples rose, the S&P 500’s technology index dropped 1.63%. In contrast, Alibaba’s U.S. shares jumped 13% following strong quarterly growth in its cloud business. As the U.S. stock market anticipates a possible rate cut in September, shares saw mixed performances with varying sectoral impacts.
(With inputs from agencies.)