US equities were firmly lower for a second session on Friday as markets reconsidered their speculative positions on major AI infrastructure companies. The S&P 500 and the Nasdaq 100 fell 0.5%, while the Dow dropped 1%. Stocks with exposure to AI demand extended yesterday’s slump, triggered by analysts’ growing concerns that spending on AI infrastructure will not be sustained following Nvidia’s earnings call. The chip giant fell 2.5% after its 5.5% plunge yesterday, while Broadcom, Oracle, and Microsoft fell 2.5%. The decline for defensive stocks also reflected markets pivoting toward long-duration Treasuries despite concerns of sticky inflation, with producer inflation fell less than expected in January, while the core gauge unexpectedly jumped. Dell surged 16% on its strong forecast for AI servers, while CoreWeave sank 15% after missing profit. Also, Netflix jumped 9% as it bowed out of its bidding for Warner Bros.
