Morning Bid Europe-AI stocks learn to fly — but ain't got wings
SPY•Key economic events
Economic events:
- Germany: Industrial orders for June
- United States: Jobless claims
Fed path and U.S. data remain in focus
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 swing in Asia and on Wall Street
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.
Tech-heavy South Korea's KOSPI .KS11 shed 4% in Asia on Thursday after surging nearly 6% the previous day. Japan's Nikkei .N225 similarly slumped 1.6%, following a 3.66% jump. Taiwan's benchmark .TWII was roughly flat after a nearly 2.9% gain.
Those moves tracked losses in Wall Street peers as Elon Musk-led AI and satellite company SpaceX SPCX.O and U.S.-listed chipmaker Advanced Micro Devices AMD.O saw their shares tumble on recurring concerns about massive AI spending.
Oil traders watch Iran and the Strait of Hormuz
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.
