Wall Street Held Back, Rotation to Non-AI Stocks Increasingly Visible
US stock indexes were mostly stagnant on Friday after being hammered in the previous session, as the market was still digesting a wave of selling in AI-themed stocks—despite January's lower-than-expected inflation data. The S&P 500 index, the Nasdaq, was flat, while the Dow fell about 100 points at the opening.
The more benign CPI data did give some breathing room for the interest rate cut narrative (the headlines slowed, and the market recalculated the Fed's path), but the effect on equities was not immediate, as sentiment remained restrained by a larger issue: doubts about AI capex and how quickly those computing investments would translate into profits.
At the stock level, the rotation was clear: certain infrastructure/semiconductor companies were the mainstays, while several AI-exposed names remained sluggish after yesterday's sharp pressure. Applied Materials surged +13.53% and Arista Networks rose +7.14% (following strong performance/business direction news), while Micron fell -4.02%.
Meanwhile, several big names often associated with the AI theme saw limited movement: Palantir -0.30%, Microsoft -0.03%, and Oracle +1.69% at the last update—reflecting a market that is being "picky" and unwilling to fully risk-on before volatility subsides.
Source: Newsmaker.id
