NEW YORK (AP) — Wall Street drifted to a quiet finish Monday after stocks of chipmakers and other winners of the artificial-intelligence boom trimmed some of their recent losses.
The S&P 500 dipped 0.2%, coming off its first losing week in the last three and just its third since the end of March. The Dow Jones Industrial Average dropped 307 points, or 0.6%, and the Nasdaq composite was basically flat after slipping by less than 0.1%.
Nvidia added 0.2% and held firmer following its drop on Friday, when it was the heaviest weight on the S&P 500. Sandisk climbed 2.7% after tumbling 29% last week.
Advanced Micro Devices rose 1.6% after announcing an expanded partnership where Microsoft will use its products for AI, including its new Helios product starting in the second half of the year.
Such stocks have been under pressure for weeks on worries that their prices shot too high in the euphoria around AI. On one hand, companies are making billions of dollars in revenue as customers pour money into AI chips and data centers. But all that spending may fizzle out if AI doesn’t produce as much profit and productivity as promised.
Wall Street may get some hints on that soon as some of the biggest spenders on AI report their latest quarterly results. On Wednesday, Alphabet will tell investors how much it made during the spring and give updates on its AI efforts.
All kinds of companies are under pressure to report strong growth in profit for the spring. They will need to in order to justify the big moves their stock prices have made. Indexes are near their records, even with the recent shakiness for AI stocks.
AMC Entertainment jumped 26.8% after the movie-theater operator reported stronger revenue for the latest quarter than analysts expected. It also said some of its theaters in Los Angeles and other cities ran “The Odyssey” for more than 85 straight hours from Thursday through Sunday to meet demand.
Domino’s Pizza climbed 2.1% after delivering stronger revenue for the spring than expected. CEO Russell Weiner said the company saw growth in orders for both its carryout and delivery businesses, even with the broad industry continuing “to face pressure on consumer demand.”
Another restaurant chain, Jersey Mike’s, is beginning its roadshow to raise interest in its stock, which it’s planning to sell on the New York Stock Exchange for between $21 and $25 per share in an initial public offering.
It and other businesses are facing pressure in selling to U.S. households feeling crunched by still-high inflation, thanks in large part to high gasoline prices. The average cost for a gallon of gasoline in the United States has gotten back above $4 because of higher crude oil prices.
