London Stock Exchange Group PLCLSEG
Mentioned
Impact on stocks 1
Artificial Intelligence
London Stock Exchange Group PLCLondon Stock Exchange Group PLCU.S. stocks closed lower on Friday, with the Dow Jones Industrial Average falling 406.55 points to end at 52,146.42, as a sell-off in artificial intelligence shares spread to other sectors, prompting investors to reduce holdings in risk assets. The S&P 500 dropped 76.08 points to close at 7,457.69, and the Nasdaq Composite fell 361.70 points to 25,520.24. Semiconductor stocks were hit hard, with the Philadelphia Semiconductor Index posting its biggest weekly decline in over a year and tumbling more than 18% in July, though it remains up nearly 65% year-to-date. The S&P 500 has gained almost 9% over the same period. The index closed 20.2% below its record high set on June 22, confirming a bear market. Reuters analysts noted that some investors are beginning to reposition for the possibility that AI investment, worth nearly one trillion dollars, could slow down, with many active fund managers already reducing their exposure to the sector. Ryan Detrick, chief market strategist at Carson Group, said the market is growing tired of chip stocks, which have fallen in three of the past four weeks, and are returning to levels more aligned with fundamentals. The second-quarter earnings season is still in its early stages, with 49 S&P 500 companies having reported so far, and 90% of them beating market expectations, according to LSEG data. Analysts have raised their year-over-year earnings growth forecast for S&P 500 companies to 26.0%, up from the 19.2% projected on April 1.
London Stock Exchange Group PLC