Wall Street in the Red for 2 Days
US stocks weakened for the second consecutive session on Friday (February 27th), as the market began to review speculative positions in AI infrastructure companies. The S&P 500 and Nasdaq 100 each fell around 1%, while the Dow fell 1.3%.
The greatest pressure came from stocks sensitive to AI demand. Nvidia fell around 2.5% again after a sharp drop in the previous session, while Broadcom, Oracle, and Microsoft also fell around 2.5%. The market assessed a new concern: whether the massive spending on AI computing would truly be sustainable after Nvidia's earnings call raised more questions than answers.
On the macro front, defensive sentiment was growing as investors shifted to long-dated bonds. This occurred despite inflation remaining "sticky": PPI data was deemed insufficiently cooling, and core PPI actually surged unexpectedly—reinforcing the "higher for longer" narrative.
However, the movement was not uniform. Dell surged about 10% after strong projections for AI servers, while CoreWeave plunged about 12% after its earnings report sparked concerns about margins and capital expenditure structure. Outside of the AI theme, Netflix surged about 7% after reportedly withdrawing from the bidding process for Warner Bros. Discovery, easing speculation about a major deal amid market uncertainty.
Source: Newsmaker.id
