Amidst a volatile day for global markets, U.S. stocks rose while Brazilian stocks fell and AI stocks continued to move.
On Monday, the S&P 500 increased by 0.7%. The Nasdaq composite increased by 0.8%, while the Dow Jones Industrial Average increased by 0.3%. After weeks of intense fluctuations, AI-related equities remained volatile. Earnings reports from almost one in three S&P 500 stocks will be released later this week.
The latest interest rate decisions made by the Federal Reserve and other major central banks will also be made public. Brazilian equities plummeted when the country’s president was unexpectedly reelected.
Quick Fact
| Detail | Information |
|---|---|
| Market Update | US stocks rose amid global market volatility |
| S&P 500 | Up 0.7% |
| Nasdaq Composite | Up 0.8% |
| Dow Jones Industrial Average | Up 0.3% |
| Nvidia Shares | Up 2.5% |
| Meta Platforms | Announced plans to raise $35 billion, according to the supplied report |
| Key Concerns | AI funding costs, borrowing risks and future profitability |
| Upcoming Earnings | Alphabet, Microsoft and Amazon |
| Market Outlook | Investors await corporate earnings and central bank decisions |
The S&P 500 pulled within 1.8% of its all-time high set earlier this month after rising 0.7% and more than recovering its losses from previous week. With just under an hour left in trade, the Dow Jones Industrial Average was up 110 points, or 0.2%, while the Nasdaq composite was up 0.9%.
With a 2.5% increase, Nvidia gave the market the biggest boost. As a result, the semiconductor manufacturer was able to somewhat recover from its three-week losing streak—its longest since June.
Meta helps lead the swings
After announcing intentions to raise $35 billion by issuing stock to help finance its AI efforts, Meta Platforms saw fluctuations. Additionally, it stated that after it starts trading, it might generate an additional $60 billion by selling shares of a new class of its stock. Meta’s stock fell more than 2% at first, but it soon turned positive before falling back to a 1.3% loss.
Worries remain about borrowing for AI
After agreeing to an approximately $40 billion contract with an organization headed by Apollo Global Management to lease AI processing capacity, SpaceX, Elon Musk’s rocket firm that also operates the xAI business, saw similar fluctuations. Its stock dropped by about 2% at first, then turned around and gained 1.9% before leveling off at a 0.5% increase.
Over the weekend, Musk issued a warning on his social media platform, X, that hundreds of businesses that rent out AI processing capacity are in danger due to the difficulties of financing money. He said that these businesses might face “guppy-level death and consolidation.”
It’s a big week for profit reports
This coming week, big tech firms’ profit reports may provide additional information about how spending on AI is going and if it’s generating the productivity and profits that supporters had predicted.
Amazon will release its most recent quarterly results on Thursday after Alphabet and Microsoft do on Wednesday.
Despite reporting a higher profit for the summer than experts anticipated, Verizon Communications saw a 3.7% decline due to lower-than-expected sales.
This week, around one in three S&P 500 stocks are expected to release their most recent quarterly results.
