US stocks mostly fall amid angst over AI valuations
- S&P 500 declined 0.4% while Nasdaq Composite Index dropped 0.8%
Wall Street stocks were mostly lower due to slower US retail sales growth and concerns over high valuations of artificial intelligence equities, despite solid underlying consumer demand.
- Slower US retail sales growth.
- Concerns over AI equity valuations.
- Unease regarding Q2 earnings forecasts.
NEW YORK: Wall Street stocks were mostly lower early Thursday as markets weighed data showing slower US retail sales growth and angst over lofty valuations of artificial intelligence equities.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 percent at 52,751.45.
The broad-based S&P 500 declined 0.4 percent to 7,543.96, while the tech-rich Nasdaq Composite Index dropped 0.8 percent to 26,051.43.
US retail sales ticked up by 0.2 percent month-on-month in line with analysts’ expectations, but slower than the 1.0 percent jump in May.
But analysts said the figures suggested solid underlying consumer demand given the drop in gasoline prices during the month.
Markets are also a bit uneasy about the second-quarter earnings season due to forecasts for growth of more than 20 percent among S&P 500 companies, said Jack Ablin of Cresset Capital, who also cited elevated AI valuations as a concern.
“Investors are trying to find their footing in AI,” Ablin said.