Trading session concluded with gains on Wall Street: the Dow Jones Industrial Average increased by 1.02%, and the expanded S&P 500 showed a rise of 0.29%, while the technology-focused Nasdaq remained unchanged, declining by 0.02%.
Patrick O'Hare from Briefing.com told AFP that many stocks outside the technology sector performed relatively well due to falling oil prices and the rotation of investment flows.
Investors are showing greater interest in more 'traditional' sectors, such as industrials, pharmaceutical laboratories, and major banks, while companies related to artificial intelligence (AI) are losing appeal.
According to O'Hare, a positive factor is that the liquidity generated from selling AI stocks remains invested on Wall Street, which prevents a mass exit from the market. He emphasized that the market continues to be in an uptrend.
Optimism is supported by company results. The defense sector closed higher after several companies reported earnings that exceeded expectations, such as RTX (+0.64%) and Northrop Grumman (+4.57%).
The drop in oil prices, linked to hopes for renewed dialogue between the US and Iran, allows companies to anticipate less pressure on costs.
Regarding AI, O'Hare noted that upcoming earnings reports from major players are accompanied by some nervousness due to fears that growth rates may prove less sustainable than forecast. He reminded that a significant part of investor expectations is based on a very high growth rate, which justifies high valuation levels and huge AI development costs, and disappointment in these expectations could lead to stock price declines, as has already been observed.