With CPI data and cloud company earnings due this week, the AI stock rebound continues to look fragile. Expectations for a December rate hike revived on strong employment data, while funds were seen shifting toward infrastructure-related stocks amid concerns over AI-related spending.
Major stock indexes generally declined this week. The S&P 500 fell 2.7% on the week, the Nasdaq Composite fell 3.4%, and the NY Dow fell 0.94%. Although semiconductor stocks pushed the Nasdaq 100 higher, the broader market moved lower.
Expectations for a December rate hike revived against the backdrop of strong employment data. Meanwhile, concerns over AI-related spending intensified, and investors withdrew funds from infrastructure-related stocks that appeared overheated. Institutional investors were seen placing sell orders during the downturn.
CPI data and cloud company earnings are among the upcoming catalysts, and cautious views are spreading over the sustainability of the AI stock rebound.