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Financial Markets 11/11 09:29
NEW YORK (AP) -- U.S. stocks are drifting in mixed trading on Tuesday, a
slowdown after swinging from their first losing week in four to Monday's roar
back.
The S&P 500 slipped 0.2% in early trading. The Dow Jones Industrial Average
was up 78 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq
composite was 0.4% lower. All three are still near their all-time highs, but
they've been shaky recently.
Much of the focus was on Nvidia and other winners of the
artificial-intelligence frenzy, as usual. Their sensational growth has been a
major reason the U.S. stock market has set records despite a slowing job market
and still-high inflation. But their prices have shot so high that critics say
they look too expensive and are reminiscent of the 2000 dot-com bubble that
ultimately burst nearly halved the S&P 500.
Nvidia sank 2.1% after SoftBank, a Japanese technology giant that had been a
major investor, said it had sold its entire stake last month for $5.83 billion
in the AI chip company. SoftBank is not giving up on AI. It's still focusing on
OpenAI, the maker of ChatGPT.
Because Nvidia is the largest company on Wall Street by value, it was the
heaviest single weight dragging the S&P 500 lower. Oftentimes, it alone can
dictate the movement of S&P 500 index funds, which sit at the heart of many
401(k) accounts. A day earlier, Nvidia's rally of nearly 6% was the biggest
reason the S&P 500 nearly erased all its loss from last week.
CoreWeave, whose cloud platform helps customers running
artificial-intelligence workloads, fell 11.8% even though it reported a smaller
loss for the latest quarter than analysts expected. Its revenue also topped
expectations, and financial analysts praised its momentum. But investors seemed
to focus instead on supply-chain issues that are delaying a data center and
pushing some of its revenue further into the future.
On the winning side of Wall Street, BigBear.ai jumped 16.9% after reporting
better results for the latest quarter than analysts expected. It also said it
would buy AskSage a generative AI platform built for national-security agencies
and other highly regulated areas, for $250 million.
Outside of AI, Paramount Skydance climbed 9.4%, even as the entertainment
giant fell short of Wall Street's revenue and profit targets. It was the
company's first earnings report since Skydance closed its acquisition of
Paramount in early August, and investors were apparently encouraged that it
raised its 2026 cost-cutting goal to $3 billion from the previous $2 billion.
In stock markets abroad, indexes rose in Europe following a mixed finish in
Asia.
Japan's Nikkei 225 slipped 0.1% even though SoftBank climbed 2%. Besides the
sale of its Nvidia stake, the tech giant also reported a much better profit
than analysts expected.
The U.S. bond market is closed for the Veterans Day holiday.
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AP Business Writers Chan Ho-Him and Matt Ott contributed.
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