Treasury yield drop may signal deeper AI credit risks
Despite a sharp fall in Treasury yields, stocks have been battered. Rising CDS spreads for AI players like CoreWeave and Oracle suggest investors are worrying…
Major US stock indices ended lower except for the Nasdaq 100, which eked out a small gain.
The main US equity benchmarks finished in negative territory. The S&P 500 declined 0.33%, and the Nasdaq Composite dropped 0.12%.
The Dow Jones Industrial Average posted the steepest loss among the major indexes, dragged down by drops in Amazon (-2.50%), Honeywell (-1.79%) and Sherwin-Williams (-1.73%). Meanwhile, the Nasdaq 100 managed a marginal rise of 0.08%. The closing levels for the major indexes are listed below:
Among the day's standout gainers were:
Some notable losers in the session were:
The final readings could have been steeper. During the session, the Nasdaq Composite touched a low of -152.60 points, and the S&P 500 hit a low of -46.69 points. The Nasdaq 100 fell as much as 128.93 points before recovering to close up 23.55 points.
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Despite a sharp fall in Treasury yields, stocks have been battered. Rising CDS spreads for AI players like CoreWeave and Oracle suggest investors are worrying…
Moderna shares slid up to 25% on Thursday even though its cancer vaccine cut melanoma recurrence risk by 42% in certain patients.
Asian stocks mostly fell as a US chip rout spread, gold dropped below $4,000, and Japan's core CPI returned above the BoJ target.
Nick Colas of DataTrek says tech is about 50% of the S&P 500, weakening the index as an economic proxy. He recommends the equal-weight S&P 500 and homebuilders.