Stocks Dip Amid Inflation Fears, Meta and Apple Shine with AI Developments
U.S. stocks ended a holiday-shortened week lower due to rising oil prices and bond yields fueling inflation concerns ahead of the Federal Reserve's upcoming meeting. The Dow Jones Industrial Average fell 1.6% for the week despite Friday’s rebound, while the S&P 500 and Nasdaq lost 0.8% and 0.7%, respectively. Crude oil surged above $100 per barrel on Thursday due to U.S.-Iran tensions, rising over 9% last week. The yield on the 10-year Treasury hit a high of nearly 4.95%. Inflation data showed persistent pressure with core CPI up slightly more than expected. Amid these headwinds, Meta Platforms and Apple stood out for their AI advancements. Meta launched two new models—Muse Spark 1.3 and the Muse personal AI agent—which integrate across its platforms serving billions of users. The company’s stock rose nearly 5% as investors began to see value in its growing AI assets. Meanwhile, Apple unveiled a foldable iPhone with significant design innovation and raised prices on flagship models, helping offset higher memory costs while maintaining demand. Both companies are seen by analysts like Jim Cramer as strong long-term investments due to their strategic moves into artificial intelligence.
Topics: bond yields dow jones industrial average fed rate hike expectations inflation nasdaq oil prices s&p 500