The S&P 500 snapped a three-day losing streak on Friday after the headline consumer price index reading came in slightly softer than economists predicted, rising 0.2% to 4,056.08. The benchmark index still finished the week down more than 1% as concerns over disruption from artificial intelligence battered industries like trucking, media, and real estate, with $CARA and $KNX being among the hardest hit.
The consumer price index, a key inflation indicator, rose 3.3% year-over-year, slightly below the 3.4% forecast by economists. This softer-than-expected reading helped alleviate some of the pressure on the market, which had been driven lower by concerns over rising interest rates and the impact of artificial intelligence on various industries. The Federal Reserve has been closely watching inflation data as it considers its next move on interest rates.
The Nasdaq Composite, meanwhile, slid more than 2% for its fifth straight negative week — its longest losing streak since 2022. This decline was driven in part by the struggles of tech giants like $TSLA and $AAPL, which have been impacted by the growing use of artificial intelligence in industries like autonomous vehicles and media. The Nasdaq has been particularly sensitive to changes in the AI landscape, with many of its component stocks heavily invested in the technology.
In other news, Rev. Jesse Jackson died today at 84 years old, leaving behind a legacy as a civil rights leader and advocate for social justice. While not directly related to the market’s movements, Jackson’s passing serves as a reminder of the broader social and economic trends that can impact investor sentiment and market performance. As the market continues to navigate the challenges posed by artificial intelligence, it will be important to consider the potential social and economic implications of this technology.
The following table summarizes the key market data for the week:
| Index | Weekly Change |
|---|---|
| S&P 500 | -1.1% |
| Nasdaq Composite | -2.3% |
Looking ahead, investors will be closely watching the next round of economic data, including the producer price index and retail sales figures, for signs of how the market will react to the ongoing impact of artificial intelligence. As the use of AI continues to grow and evolve, it is likely to have a significant impact on various industries and the market as a whole.
⚡ Why it matters: The S&P 500’s ability to snap its losing streak on Friday suggests that the market is still sensitive to inflation data and the impact of artificial intelligence on various industries.
📊 By the numbers:
S&P 500 weekly change: -1.1%
Nasdaq Composite weekly change: -2.3%
Consumer price index year-over-year change: 3.3%
🔗 Source: Bloomberg*
