AI-Fueled Stocks Weighed Down by Inflation Concerns

Investors remain focused on the intersection of monetary policy, inflation, and corporate earnings. With major earnings reports, the monthly jobs report, and additional inflation readings on deck, traders are watching to see whether strong AI-driven fundamentals can continue offsetting higher borrowing costs and renewed macroeconomic risks.

The past week saw a mix of bullish and bearish calls from investors. On the positive side, Apple's Q3 results beat expectations, with its active installed base reaching an all-time high. Applied Digital Stock Climbed on Q4 double beat, while Bloom Energy also blew past Q2 estimates, sending shares up.

However, not all stocks fared well. AMD stock dropped due to concerns ahead of August earnings, and Carvana's Q2 results led to a decline in its shares despite an earnings beat. Sandisk Stock extended losses as the AI memory trade unraveled.