The profitability burden is being highlighted as investment in artificial intelligence (AI) expands, and the New York Stock Exchange closed lower on the 29th (local time), centered on technology stocks. However, after a sharp decline during trading hours, buying at low prices flowed in, and major indices partially recovered from their losses.
On this day, the S&P 500 index, a benchmark for large-cap stocks on the New York Stock Exchange, fell 0.13% compared to the previous trading day. The index, which had fallen by as much as 1.5% during trading hours, reduced its losses due to buying sentiment centered on economically sensitive stocks. The Nasdaq index, which has a high proportion of technology stocks, closed at 23,685.12, down 0.72%, and the Dow Jones Industrial Average, which gathers blue-chip stocks, finished trading at 49,071.56, up 0.11%.
Microsoft (MS) plunged 10% on this day, marking its biggest drop since the early days of the COVID-19 pandemic in March 2020. Concerns about short-term profitability due to AI investments have been raised as the growth rate of the cloud business slowed down in the second quarter of the fiscal year and the third-quarter operating profit margin guidance fell below market expectations. MS has been a core stock of the 'Magnificent 7,' which has led the stock market rally in recent years.
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https://n.news.naver.com/article/018/0006209910?sid=101
