What Wall Street Is Saying About AI’s Tough Market Week

The potential delay of hundreds of billions of dollars in promised spending on artificial intelligence is dealing a new blow to the stock-market rally. The S&P 500 and Nasdaq composite both turned in negative performances for the week, dragged down by the same AI names that drove the indexes to new highs earlier this year.

For the week, Oracle fell 13%, CoreWeave lost 11%, Broadcom dropped 8% and Nvidia retreated 4%. The PHLX Semiconductor Index declined 3.6%.

“How patient are we going to be for these companies to get past the enthusiasm of the build-out of AI to the timeframe when we start expecting a return?” said Steve Wyett, chief investment strategist at BOK Financial.

“This is all compounding on itself,” said Rishi Jaluria, an analyst at RBC Capital Markets. “People are viewing Oracle as a barometer right now and saying ‘what does this mean for chips, or power?’ There is a lot of downstream impact.”