US stocks weekly: AI reality

Apple

Yesterday 21:57

** S&P 500 .SPX snaps two-week winning streak, retreats 2% in tumultuous trading amid AI anxiety .N
** Dow .DJI ekes out 0.6% gain, tech-heavy Nasdaq Composite .IXIC tumbles 4.6%
** U.S. 10-Year Treasury yield US10YT=RR hits lowest since early May, ends in 4.37% area as oil prices recede and inflation data softer than feared US/
** In the end, a minority of sectors get a rude awakening; Communication Services, Tech and Consumer Discretionary stunned, while dividend plays and Healthcare hopeful

    ** Communication Services .SPLRCL dives 6.2%. Google parent Alphabet GOOGL.O to replace Verizon VZ.N in the DJI, and report says two leading researchers at Google planning to leave for AI startup Anthropic. GOOGL shares suffer >8% weekly loss
** Tech .SPLRCT drops 5.4%. On Tues, semiconductors and megacaps fall on Fed rate hike fears, costly borrowing for AI buildout
On Thurs, Micron MU.O soars after strong forecast, $22 bln customer commitment to lock in supplies of memory chips
Qualcomm QCOM.O jumps on forecasting $15 bln data center chip sales by 2029
But on the flip side, Apple AAPL.O stumbles as skyrocketing memory chip costs push up MacBook, iPad prices
On Fri, chipmaker Onsemi ON.O plunges on $7 bln all-stock deal to buy Synaptics SYNA.O

    Chip stocks drop as tech selloff deepens; report OpenAI considering delaying its IPO until 2027 weighs
Semiconductor index .SOX sputters 8%

    ** Financials .SPSY up 0.5%. JPMorgan JPM.N rises as succession planning hints at more years of Jamie Dimon as CEO
However, investment banking giants Morgan Stanley MS.N, Goldman Sachs GS.N fall after report OpenAI leaning toward 2027 IPO

    ** Industrials .SPLRCI firm 0.5%. Sector outperforms with AI in the driver's seat
FedEx FDX.N initially skids on margin pressure, while Wall Street analyst optimism endures
** Healthcare .SPXHC surges 7.9%. Life sciences firm Bio-Techne Corp TECH.O vaults on $11.3 bln buyout deal from Germany's Merck KGaA MRCG.DE
Moderna MRNA.O shares rally; some analysts raise PTs after co showcased its drug pipeline at investor day event MRNA.O 
** Meanwhile, UBS warns of 'AI Capex taper tantrum' as Mag 7 stocks slide
** SPX performance YTD:
     
Energy
19.5%
Industrials
16.9%
Tech
14.5%
Real Estate
13.0%
Materials
12.6%
Staples
8.8%
Utils
8.3%
SPX
7.4%
Healthcare
3.7%
Financials
-2.0%
Comm Svcs
-2.6%
Discretionary
-3.8%
     
     

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com ))