Following last week's sharp drop in AI stocks, US stocks are seeking a rebound ahead of CoreWeave's earnings as stocks supplying components for data centers suffer steep declines. Political developments and the release of employment data are also affecting market momentum.
In the US market last week, AI data-center-related stocks plunged against the backdrop of the midterm election results, and stocks supplying components for data centers fell sharply. Amazon, meanwhile, remained firm, while the SOX Index, which tracks semiconductor stocks, suffered a steep decline.
Concerns over data-center regulation and Tesla's scaled-back production plans were cited as factors behind the declines, while resource stocks, including Exxon Mobil, were also sold. Following the employment data and the FOMC's interest-rate outlook, the market narrowed its losses, but volatility increased overall.
The market is focused on the scheduled release of CoreWeave's earnings, with the potential for a rebound in AI-related stocks expected to be a key issue. Some stocks were also supported by expectations for the Democratic Party's renewable-energy policies.
Overall, sharp declines in AI-related stocks and movements in the major indices remain mixed, although signs of a rebound have emerged at times as the factors behind and surrounding the moves settle down, according to reports.