The pAIn trade strikes
SPY•US stocks mostly fell Thursday as technology and AI shares slid, with the Nasdaq down 1.3% and chip stocks down 4%. Oil rose 4%, while long-dated US Treasury yields fell after a strong 30-year bond auction.
1. AI shares retreat
US technology and AI stocks fell Thursday as investor concerns intensified over the profitability of the AI buildout. The Nasdaq dropped 1.3%, its biggest fall in nearly two months, while the S&P 500 lost 0.5% and the Dow was flat. Chip stocks fell 4%, including declines of 3% for Nvidia and 5.5% for Intel and Oracle.
2. Bonds and oil
The US Treasury’s 30-year bond auction cleared at a 5.618% yield, reportedly the highest since 2000, with a bid-to-cover ratio of 2.54. Long-dated US yields fell by as much as 6 basis points. Oil rose 4%, and Brent had its strongest day in a month.
3. Tariff price effects
A New York Fed paper studying a sample basket of 67 goods found tariffs had added nearly 3 percentage points to US goods-price inflation as of February. The paper said tariff pass-through had likely faded by then and that its contribution would be negative through the middle of next year.
