A number of stocks fell in the afternoon session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.
Shares of C3.ai are continuing their decline on Thursday. The enterprise artificial intelligence company is grappling with the fallout from a dire preliminary earnings report.
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The AI rally continues to lead indices to new all-time highs, but not every company is participating. These 3 AI stocks are in correction: can they bounce back?
A number of stocks jumped in the afternoon session after the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.
A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
BigBear.ai (NYSE: BBAI), a prominent artificial intelligence (AI) data analytics firm, recently experienced a dramatic downturn in its stock value, with shares plummeting by over a quarter. This sharp decline was triggered by the company's decision to significantly slash its revenue outlook for the full year and withdraw its
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The financial markets are currently witnessing a fascinating dichotomy in corporate performance, with artificial intelligence software provider C3.ai (NYSE: AI) experiencing a significant downturn while tech titan Apple Inc. (NASDAQ: AAPL) continues its impressive ascent. This stark contrast highlights the market's evolving priorities, where operational stability and strategic foresight
Wondering how the US markets performed one hour before the close of the markets on Monday? Discover the movers and shakers of today's session in our comprehensive analysis.
The financial markets are currently witnessing a stark divergence in corporate fortunes, highlighted by the recent earnings reports of two prominent technology companies. C3.ai (NYSE: AI), an enterprise AI software provider, has experienced a significant stock tumble following a warning of a potential operating loss and a critical assessment
Shares of artificial intelligence (AI) software company C3.ai (NYSE:AI)
fell 22.6% in the afternoon session after a combination of disappointing preliminary financial results and a major leadership change. The company announced preliminary revenue for its fiscal first quarter that fell well short of analyst expectations and its own previous guidance (roughly 33% below the midpoint of its prior outlook), with CEO Thomas Siebel calling the results "completely unacceptable."
Further adding to the uncertainty, Siebel is stepping down from his role due to health reasons, and the company has begun a search for a successor. This dual blow of weak performance and an unexpected leadership transition has led to multiple analyst downgrades and price target cuts, fueling a strong negative sentiment among investors. The stock's decline is a continuation of a broader struggle for the company, which has faced challenges in its growth and profitability despite the overall excitement surrounding the AI sector.
