Stocks Settle Mixed as AI Concerns Offset Easing Geopolitical Tensions
U.S. stock indexes settled mixed on Monday, with the Dow Jones Industrial Average posting a one-week high while the Nasdaq 100 fell to a two-and-a-half-month low due to weakness in chipmakers and artificial intelligence infrastructure stocks. Investors rotated out of AI-related sectors into more traditional areas like software. The market initially rose after U.S.-Iran tensions eased, pushing crude oil prices lower and lifting global markets. Easing geopolitical risks were partially offset by continued concerns over AI spending and its impact on earnings growth. Despite a strong economic report showing capital goods orders rising above expectations, the Nasdaq 100 was weighed down due to investor caution around tech stocks. The market is now looking ahead for Q2 earnings from major technology firms like Amazon, Meta Platforms, and Microsoft. Overseas markets also saw gains as investors remained optimistic about corporate profits despite ongoing geopolitical uncertainties in the Middle East.
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Topics: AI stocks geopolitical tensions oil prices stock markets