LIVE MARKETS-AI stocks learn to fly — but ain't got wings
SPY•Key events to watch
Economic events:
- Germany: Industrial orders for June
- United States: Jobless claims
Oil and geopolitics remain in focus
A similar on-again, off-again theme is playing out in efforts to end the U.S. conflict with Iran. Reuters reported a proposed deal between Iran and Oman could give Tehran control over inbound traffic through the Strait of Hormuz, a crucial route for global energy supplies.
There was no immediate U.S. reaction to the proposal. And while U.S. President Donald Trump said a deal to reopen the strait was imminent, U.S. officials have repeatedly insisted they would never agree to Iran controlling access to the strait.
Oil prices traded in the $70-a-barrel range, with Brent crude futures LCOc1 rising 0.45% to $79.81 a barrel and U.S. crude CLc1 edging 0.31% higher to $75.45 a barrel in the Asian session, with investors waiting for further developments.
Fed outlook and U.S. labor data ahead
Traders were also weighing the Federal Reserve's likely rate path ahead of Friday's closely watched nonfarm payrolls report.
Wednesday's ADP private employment report showed U.S. private-sector job growth slowed in July from June and missed market expectations. An Institute for Supply Management survey pointed to solid growth in the services sector, but also rising input costs that could keep inflation elevated.
AI stocks and Asian markets swing on spending concerns
In "Learning to Fly", Tom Petty sang that what goes up must come down. For AI-related stocks, that looks a lot less like a lyric than a trading pattern.
