The Dow Jones Industrial Average dropped more than 500 points as investors trimmed positions in technology stocks and booked profits in other sectors.
Traders work on the floor of the New York Stock Exchange during morning trading on Jan. 31, 2024 in New York City.
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe, up 3.5% in the last five trading days on hopes of interest rate cuts, lost 1.9%. The yield on the 10-yearas it solidified its dominance in the streaming market. The company saw a 34% growth in ad-supported memberships and a 16.
"We understand the rotation away from AI/data-center semis towards industrial/auto/consumer, but it's not supported by fundamentals and is likely short-term positioning driven," Bank of America analyst Vivek Arya said in a note Wednesday. Despite the recent sell-off, Arya remains bullish on the sector, particularly on AI, which he sees as the strongest and most dependable area of capital expenditures. Outside of AI,"global growth remains murky at best," he added, pointing to consumer restraints on the PC/smartphone upgrade cycle, sluggish enterprise and telco demand, as well as weak demand in China.Thursday, a smaller version of its flagship AI model.
"These are politically sensitive companies for a good reason because they are the most vital part of the semiconductor industry,"They have already given up quite a bit of revenue because of the restrictions and exports to China. I think the political football will continue around this. We have more trade with than we don't have with China.
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