AI Selloff Keeping a Lid on Investor Optimism
Complete. Here is the key summaryUS stocks declined as AI sector rotation weighed on sentiment, with the Nasdaq heading for back-to-back losses and the VIX rising. While broad indexes faced weekly losses, Travelers (TRV) surged 8.1% after beating earnings expectations. Conversely, Cameco (CCJ) saw heavy put activity amid a selloff, and Applied Digital (APLD) dropped 6% due to AI infrastructure weakness.
Stocks are stumbling into the weekend, as the tech sector rotation picks up steam. The Nasdaq Composite (IXIC) is down 340 points midday, heading for its second-straight loss of 1% or more. The S&P 500 fell below 7,500, while the Dow Jones Industrial Average (DJI) tries to pare a sharp morning drawdown. All three major indexes are heading toward weekly losses.
Not even the University of Michigan's consumer sentiment survey climbing past estimates is quelling the uneasiness, with Wall Street's "fear gauge," the Cboe Volatility Index (VIX) heading for its highest close in three weeks.
Continue reading for more on today's market, including:
- Netflix earnings: what you need to know.
- Apple stock just conquered Nvidia on the charts.
- Looking ahead: trade earnings along side us here.
- Plus, uranium bears move in; Travelers stays strong; and the biggest AI laggard.
Cameco Corp (NYSE:CCJ) stock is seeing a surge in options activity today. At last look, over 68,000 puts have changed hands, volume that's 11 times the average intraday amount and roughly 16 times the number of calls exchanged. The weekly 7/24 85-strike put leads the charge, while new positions are being bought to open at the September 95 put. The uranium miner is down 2.5% to trade at $85.17 and is nursing a 7.1% year-to-date deficit, thanks in part to a 16.5% July drawdown.
Travelers Companies Inc (NYSE:TRV) stock is bucking the broad market selloff, up 8.1% to trade at $365.13 after the insurance giant adjusted second-quarter earnings and revenue above analyst expectations. TRV hit a record high of $366.69 out of the gate, and is now 26% higher on the year.
Applied Digital Corp (NASDAQ:APLD) stock is near the bottom of the Nasdaq today, down 6% to trade at $24.86. The AI infrastructure selloff earlier sent APLD as low as $24.03, though support is stepping up at its 320-day moving average. This area also roughly coincides with the shares' year-to-date breakeven level.
