Wall Street ends higher as investors digest earnings, rate cut prospects
Alphabet earnings and weighed the prospect of future interest rate cuts from the U.S. Federal Reserve.
Google-parent Alphabet dropped 7.3% after posting downbeat cloud revenue growth on Tuesday and earmarking a higher-than-expected $75 billion investment for its AI buildout this year.
Some AI-related stocks showed signs of recovery after being rocked last week following the soaring popularity of a low-cost Chinese artificial intelligence model developed by startup DeepSeek. Nvidia, which registered one of the biggest losses, rose 5.4% on Wednesday. Broadcom also rose 4.3%.
«Ultimately, demand is not going away for AI even with the DeepSeek news. They're all going to have to spend more money and that's what the AI story has been. This is a fairly long cycle story,» said Rob Haworth, senior investment strategist at U.S. Bank Asset Management.
Advanced Micro Devices, meanwhile, fell 6.3% after CEO Lisa Su said the company's current-quarter data center sales — a proxy for its AI revenue — would drop about 7% from the previous quarter.
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