00:00The tech-heavy Nasdaq Composite led Wall Street gains on Monday as investors returned to the cheap sector and other
00:07AI-related stocks following last week's bruising sell-off while investors waited for key corporate earnings reports.
00:16The benchmark S&P 500 and the Nasdaq has marked its biggest weekly declines since late June on Friday as
00:24concerns that higher interest rates could curb investments in AI infrastructure weighed on technology stocks, particularly cheap companies and data
00:33centers operators.
00:34The sell-off reflected amounting investors unease over how costly AI developments will be financed, a question that has increasingly
00:42prescient companies underpinning the US bull market, which recently marked its fourth anniversary.
00:48The market is still, again, in general, feeding off of the positive earnings cascade that comes out of the AI
00:57capex spend.
00:58So the demand for artificial intelligence tools is still very high.
01:02When they get deployed, the AI usage is demonstrating gains in productivity, and we start to see people want more
01:10compute.
01:11So that means the $10 trillion wave of AI capex is still more or less intact, and that would be
01:18one of the biggest downturns the market would expect,
01:22as if that capex comes under pressure and people don't want to spend money or we don't need that much
01:27compute anymore.
01:28Then you could start to see durable destruction to long-term earnings that have been growing this past year as
01:35a result of all of those investments.
01:36The S&P 500 gains 31.29 points or 0.41% to end at 7,690.73 points, while
01:47the Nasdaq Composite gains 290.85 points or 1.11% to end at 26,430.89.
01:57The Dow Jones Industrial Average fell 36.38 points or 0.07% to 51,966.03.
