Live Nasdaq Composite: Tech Slides as Markets Shrug Off Bullish AI Signals
Quick Read
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AI companies lost $1T in market cap this month. Investor focus shifted from capex growth to spending sustainability concerns.
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Nvidia dropped 3% despite revenue of $68.1B that beat estimates by $2.2B.
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Snowflake surged 7% bucking broader AI stock weakness on bullish fiscal 2027 outlook.
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Quantum Rally
Quantum stock IonQ (NYSE: IONQ) stock is soaring by nearly 21% today on the heels of its earnings print. IONQ has power purchase agreements in place with the likes of Meta Platforms and Amazon Web Services. In yet another bullish signal, the company revealed that its technology is now “powering the Romanian National Quantum Communication Infrastructure (RoNaQCI).”
AI Sinks
In what could be a self-fulfilling prophecy in the AI industry, C3.ai (NYSE: AI) is plummeting by 18.2% today after a Q3 earnings miss and a corporate restructuring involving a cost savings plan including job cuts.
Labor Market Signals
The number of Americans filing unemployment claims climbed higher by approximately 4,000 to hover at 212,000 during last week’s holiday-shortened period but managed to fall below economist estimates of approximately 216,000. The results aren’t likely to move the needle on the wider unemployment rate.
This article will be updated throughout the day, so check back often for more daily updates.
The markets are striking a cautious tone out of the gate, with technology stocks erring on the side of fear. Nvidia (Nasdaq: NVDA | NVDA Price Prediction) is losing 3% despite soaring revenue coupled with management’s strong outlook. The AI trade has reportedly pivoted from the capex boom to a focus on whether that spending pace can be sustained. Leading AI companies have suffered a $1 trillion loss in market cap this month at the worst of the sell-off but have recovered from their worst levels.
Advanced Micro Devices (Nasdaq: AMD) is also fueling today’s downward sentiment, falling 2.2% as the markets seemingly ignore its strong outlook provided from its recent earnings print. The markets appear to be treating the AI trade with a broad brush, one that is mired in fear at the moment.
Here’s a look at where things stand as of morning trading:
Dow Jones Industrial Average: 49,695.85 Up 213.70 (+0.43%)
Nasdaq Composite: 23,032.95 Down 127.47 (-0.55%)
S&P 500: 6,925.32 Down 20.88 (-0.30%)
Market Movers
Nvidia’s better-than-expected earnings featured EPS of $1.62 per share vs. estimates of $1.50 on revenue of $68.1 billion, far surpassing estimates of $65.9 billion. Bank of America analysts reemphasized their “buy” rating on NVDA stock, lifting the price target by $25 to $300 per share, reflecting upside potential of approximately 60%.
Morgan Stanley analysts are bullish on AI data cloud stock Snowflake (Nasdaq: SNOW) stock, reiterating an “overweight” rating on the stock. SNOW stock is a bright spot, soaring 7% today and bucking the broader downward trend. Snowflake offered a bullish outlook for its fiscal 2027 product revenue.
eBay (Nasdaq: EBAY) is reportedly slashing its workforce by 800 jobs.
Apple (Nasdaq: AAPL) CEO Tim Cook has taken to social media to tease a new product launch expected to make its debut early next week.
Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
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