Earnings Derail Stock Rally Over Doubts on AI, Consumer Strength
- Concerns about AI rally, consumer health weigh on sentiment
- ‘The bar is as high as it’s ever been’: Templeton’s Gokhman
The Nasdaq MarketSite in New York.
Photographer: Yuki Iwamura/BloombergThis article is for subscribers only.
The latest earnings reports are fanning two worries that were already gnawing away at the US stock market: That the euphoria about artificial intelligence had run too far and that — at some point — consumers spending will start to stall.
While profits overall are still expanding at a solid pace and banks’ earnings have continued to swell, those concerns have derailed a stock-market rally that until this month kept pushing major indexes to fresh record highs.