Dow Surges 530 Points as Nasdaq Slips on AI Spending Fears
The Dow Jones industrial average climbed 529.85 points, or 1.02%, to close at 52,495.88. The S&P 500 added 21.84 points, or 0.28%, to finish at 7,712.57. The Nasdaq composite edged down 6.07 points, or 0.02%, to 26,424.82.
Industrial and defense earnings drove much of the advance. Shares of 3M leapt more than 5.7% after the industrial products maker beat expectations and raised its full-year outlook. Northrop Grumman gained more than 4.5% after the aerospace and defense company also reported earnings above forecasts.
Oil prices fell as investors tracked developments in the Middle East, easing some strain on financial markets. US benchmark West Texas Intermediate crude futures settled 1.8% lower at $101.79, while international benchmark Brent slid 0.7% to $108.79 a barrel. The yield on the 10-year US Treasury note dropped about 2 basis points to 5.115%.
Anxiety lingered over heavy borrowing to fund AI infrastructure and whether future demand will justify the outlay. Even so, several AI-linked stocks rose during the session. Western Digital gained more than 3.4% and Seagate Technology added more than 2%, while CoreWeave and Marvell Technology each advanced more than 1%.
Investors now turn to upcoming earnings from major technology companies, seeking clarity on returns from AI investments, data center spending and capital expenditure plans for 2027.
European stocks fall as protests weigh on sentiment
European equities closed lower as escalating protests in France, and their spread to other European countries, rattled investors.
The benchmark Stoxx Europe 600 index fell 0.92% to 638.64. France’s CAC 40 declined 0.38% to 7,838.49, and Germany’s DAX slipped 0.06% to 25,304.42. Britain’s FTSE 100 lost 0.29% to 10,733, while Italy’s FTSE MIB edged down 0.03% to 49,071.37.
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