Wall Street in a tug-of-war after the AI ​​shock.

The US stock market closed on February 13th (early morning of February 14th in Vietnam time) with mixed results, as concerns about the impact of AI on corporate profits eased thanks to positive inflation data. However, a cautious sentiment still prevailed on Wall Street.

The S&P 500 index traded sideways on February 13th as investors weighed signals of cooling inflation against concerns about the impact of AI on corporate profits.

At the close of trading, the US stock market saw a clear divergence in performance, marking a challenging week for investors. After a sharp sell-off driven by concerns that artificial intelligence (AI) could disrupt many industries, Wall Street partially regained balance thanks to positive signals from inflation data.

The S&P 500 index was nearly flat, rising 3.41 points, or less than 0.1%, to 6,836.17. The Dow Jones Industrial Average edged up 48.95 points (0.1%) to 49,500.93. Meanwhile, the Nasdaq Composite, representing the technology sector, fell 50.48 points (0.2%) to 22,546.67. Notably, the Russell 2000 rose 1.2% to 2,646.70, indicating a shift in investment towards smaller-cap stocks.

The trading session followed the release of US inflation data for the previous month, showing a 2.4% year-on-year increase, lower than the 2.7% in December and below the expectations of many economists . While still above the Federal Reserve's 2% target, this figure was enough to help lower US Treasury yields, thereby supporting market sentiment.

In particular, a measure of core inflation, often considered a better indicator of long-term trends, recorded its lowest increase in nearly five years. This has fueled expectations that the Fed may consider easing monetary policy in the coming months, although officials remain cautious.

However, support from macroeconomic factors was not enough to completely eliminate the correction pressure in the technology sector. Nvidia shares – the largest company by market capitalization and a major influence on the S&P 500 – fell 2.2%, continuing to be pressured by debates surrounding its valuation and growth prospects in the AI ​​era.

The previous day, the market witnessed a widespread sell-off as investors worried that AI could fundamentally alter the competitive landscape of many industries. AppLovin shares plummeted nearly 20% despite reporting better-than-expected profits, due to concerns that new AI platforms would steal market share. However, on February 13th, the stock recovered 6.4%, partly indicating that the "sell now, ask later" reaction had subsided.

Similarly, the transportation and logistics sector also saw significant volatility after Algobeat Holdings, a small company, announced its AI platform could help customers increase shipping volume by up to 400% without a corresponding increase in staff. Shares of CH Robinson Worldwide surged 4.9% after a sharp 14.5% drop in the previous session.

On the positive side, Applied Materials surged 8.1% after reporting better-than-expected quarterly earnings. Company management stated that continued demand for investment in AI computing infrastructure is driving orders, demonstrating that AI is not just a risk but also a long-term growth driver for several sectors.

Meanwhile, the market also witnessed individual shocks. DraftKings fell 13.5% despite better-than-expected earnings due to a less optimistic revenue outlook for the year. Norwegian Cruise Line Holdings lost 7.6% after changing its CEO, appointing John Chidsey to replace Harry Sommer just before the announcement of its earnings results.

Looking at the week as a whole, the major indices still recorded significant declines: the S&P 500 lost about 1.4%, the Nasdaq fell more than 2%, and the Dow Jones retreated 1.2%, their worst week since November last year. This indicates that the correction pressure has not completely ended, especially as technology sector valuations remain high.

In addition, the market is closely monitoring the leadership transition at the Fed and upcoming political and economic factors. These variables could continue to strongly impact interest rate expectations and the direction of capital flows.

Overall, the February 13th session reflected Wall Street's "delicate balance": on one side, hopes for cooling inflation and lower interest rates, and on the other, concerns about the reshaping of corporate profits in the AI ​​era. In the short term, the market is likely to continue to fluctuate sharply as investors await further economic data, particularly the jobs report and new policy messages from the Fed.

The current stability may therefore only be a temporary lull after a major upheaval, before the market establishes a clearer trend in the coming weeks.

Source: https://thoibaonganhang.vn/pho-wall-giang-co-sau-cu-soc-ai-177910.html