Wall Street opens mixed as AI stocks recover from sell-off

Summarised from 2 outlets · Updated 19 Oct, 18:02 · Archive

US stock indices opened higher as artificial intelligence-related stocks rebounded from last week's sharp decline, supported by easing oil prices.

The S&P 500 and Nasdaq Composite opened higher as artificial intelligence-related stocks rebounded from last week's sharp sell-off. Both indices had posted their biggest weekly drop since late June on Friday, as concerns that higher interest rates could curb investments in AI infrastructure weighed on technology stocks, particularly data centre operators. The sell-off reflected mounting investor unease over how the costly AI build-out will be financed.

Easing oil prices provided additional support ahead of key earnings reports this week. Among individual stocks, chip makers Broadcom climbed 2.2 per cent and Micron jumped 4.3 per cent. Amazon.com was up 2.3 per cent after Morgan Stanley named it its 'top pick'. The Philadelphia Semiconductor Index rose 2.5 per cent, putting it on course to end an eight-day losing streak, its longest run of declines since October 2008.

Goldman Sachs upgraded CoreWeave to 'buy' from 'neutral', saying the recent sell-off offers a buying opportunity. CoreWeave shares were up 0.2 per cent after plunging more than 25 per cent last week on worries over its $US50 billion debt load. The blue-chip Dow, however, was weighed down by modest declines in JPMorgan Chase, Sherwin-Williams and Visa. Sam Stovall, chief investment strategist at CFRA Research, said he does not think the tech sell-off is over yet.

How it is being reported

• Wall Street opens mixed as AI-linked stocks recoverUS stocks have opened mostly higher as investors cheerings signs of easing oil prices.The West Australian · 19 Oct, 17:30
• Wall Street opens mixed as AI-linked stocks recoverUS stocks have opened mostly higher as investors cheerings signs of easing oil prices.Perth Now · 19 Oct, 17:30

In this story: S&P 500 · Nasdaq Composite · Broadcom · Micron · Amazon.com · Morgan Stanley · Goldman Sachs · CoreWeave

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