Stocks are showing gains today following unexpected consumer inflation data. Bond yields have fallen as a result, while major indices saw steep declines yesterday driven by a downturn in the AI sector.
Inflation Data and Earnings Reports
The Dow, S&P 500, and Nasdaq all faced significant drops yesterday, particularly the Nasdaq, which fell 1.8%. Later today, Nike will report its earnings, and analysts are examining what the company can do to improve its performance.
Micron’s stock surged 14% after it surpassed Wall Street estimates and increased its forecasts. The company produces memory and storage for data centers, highlighting its influence on the AI market, while other tech stocks are on shaky ground.
Company Performances and Downgrades
ServiceNow recently underwent a 5-for-1 stock split but has struggled following a downgrade by KeyBanc due to AI concerns impacting software companies. Lennar has received a sell rating from Bank of America as house prices return to 2019 levels.
In positive news, Jefferies upgraded GE Vernova, predicting a price increase, while Citi raised Sherwin-Williams’ rating. However, Morgan Stanley downgraded PayPal, citing anticipated slow growth and adjusting its price target.
Tech and Market Trends
OpenAI is reportedly negotiating deals that highlight its high valuation potential, which could impact large companies like Oracle. Meanwhile, Tesla is concentrating on self-driving and robotics, moving away from traditional car sales, thereby influencing competitors like Google.
This shift in focus has sparked discussions about the future of major tech investments, as other stocks in related sectors face significant downturns, complicating market strategies.