The rotation away from AI is gathering pace in the US market, with non-AI stocks holding firm as AI stocks decline. Nvidia's earnings and the Jackson Hole meeting are the key events on the agenda this week.
AI stocks fell sharply last week amid rising long-term interest rates and concerns about AI companies issuing corporate bonds. At the same time, some market participants saw opportunities for relative gains in small and mid-cap stocks related to cryptocurrencies and web services.
This week's focal points are Nvidia's earnings announcement on the 27th and the Jackson Hole meeting on the 28th. Depending on the direction of long-term interest rates, these events could trigger market turbulence. The upside for AI data center-related stocks is expected to depend on interest rate trends.
In terms of individual stocks, non-AI pharmaceutical names took center stage, with Moderna rising to 2.3 times its level at the end of the previous week and Merck gaining 12.3%. In Japan, web-related stocks, including 弁護士ドットコム, also remained firm.
Last week's market trends were marked by sharp declines in Seagate Technology Holdings and Intel, as well as falls in AI-related component stocks such as 太陽誘電 and SUMCO, reinforcing the sense that the AI stock boom was taking a pause.