Shares of technology companies slipped as the AI rally stalled.
Nvidia shares fell by more than 1% but remained up by more than 60% for 2024 so far.
One strategist said there was no reason to sell red-hot AI stocks but investors who had not yet jumped into the niche might want to look elsewhere.
“Momentum investing works until the momentum changes,” said Oliver Pursche, senior vice president at financial advisory Wealthspire.
“And there’s yet to be somebody out there, at least from my basic knowledge, that can predict when momentum shifts accurately…if you’re an investor and you have cash available, looking at some of the less frothy sectors…may prove to be smart over the next two years,” Pursche said.
Alphabet-owned Google was hit with a $2.28 billion lawsuit by a group of European media organizations, who are alleging Google’s position in the advertising market harmed their business.
“Bitcoin’s price tends to increase as stocks approach new record highs,” said JJ Kinahan, chief executive of IG North America and president of its brokerage tastytrade.
“However, bitcoin has no agreed-upon valuation metric and therefore, what I think we see happen is money begins flowing into bitcoin as a result,” Kinahan said.
Chinese search-engine giant Baidu posted record quarterly revenue and higher adjusted profit, helped by higher ad spending and the rising profile of its ChatGPT-rival chatbot.
Write to Rob Curran at rob.curran@dowjones.com
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