US Stocks Struggle for Direction

U.S. stock markets remained relatively steady, with the S&P 500 and Dow Jones posting slight gains, while the Nasdaq experienced a marginal decline due to a tech-driven recalibration that wiped out early gains and left the markets seeking clearer macroeconomic guidance. Prominent companies aligned with the AI sector, such as Broadcom (down 5.3%) and Oracle (down 2.7%), as well as several semiconductor firms, negatively impacted market performance. This came after Broadcom warned of margin challenges and Oracle provided less optimistic guidance, rekindling concerns about the profitability and financing of large-scale AI ventures. ServiceNow's stock plummeted over 11% following news of a significant acquisition and a downgrade from KeyBanc, intensifying volatility within the software sector and putting pressure on high-valued growth stocks. Other major tech giants also saw declines, including Apple (down 1.8%), Microsoft (down 0.9%), Alphabet (down 0.3%), and Amazon (down 1.3%). However, some mega-cap companies like Nvidia (up 1.1%) and Tesla (up 4.1%) remained resilient. The cautious sentiment was heightened by the anticipation of an upcoming data-heavy week, which includes the release of postponed U.S. labor statistics and inflation data.