Most Stocks Rose, but Indexes Still Fell

Drops for computer chipmakers and other AI winners dragged down stock markets worldwide on Thursday.

• The S&P 500 fell 38.63 points, or 0.5%, to 7,533.77, even though more stocks rose within the index than fell.
• The Dow Jones Industrial Average fell 105.67 points, or 0.2%, to 52,552.97.
• The Nasdaq composite fell 387.28 points, or 1.5%, to 25,881.95

Wall Street mostly rose after more US companies reported better earnings for the latest quarter than analysts expected. But drops for Nvidia and other chip companies overshadowed them, the AP reports. SpaceX fell 3.1% to $131.11, falling further below its $135 IPO price. The losses were sharper in South Korea, where AI winners whipped lower.

Seven out of every 10 stocks rose within the S&P 500 after more of the country's biggest companies reported better earnings for the latest quarter than analysts expected. Abbott jumped 10.7% after the healthcare company delivered a fatter profit than expected and raised its forecast for earnings over the full year. JB Hunt Transport Services climbed 8% after the freight company likewise topped analysts' expectations for the latest quarter.

• But a 1% move for Nvidia's stock packs more punch on the S&P 500 than a 1% move for any other company because it's the largest on Wall Street by value. And Nvidia fell 2.4%, making it the heaviest weight on the index. Other AI winners also sank, giving back some of their stellar gains.

• Micron Technology fell 5.6% to shave its gain for the year so far below 199%. Sandisk fell 12.6% but is nevertheless up 494% for the year so far. Western Digital sank 9.2% but is still up 171% for the year so far. Such stocks have been under pressure for weeks because of worries that their prices shot too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised.
• The losses came even though Taiwan Semiconductor Manufacturing Co., a bellwether of the chip industry, reported a stronger profit for the latest quarter than analysts expected. Its stock in Taiwan rose 1.2%, but its stock that trades in the United States fell 3%. In South Korea, drops for AI winners like Samsung Electronics and SK Hynix dragged the Kospi index down 6.4%. It's been among the world's shakiest markets in recent weeks.

Reports on the US economy came in mixed. One report said shoppers spent less at US retailers last month than economists expected. But after ignoring sales at gasoline stations, spending by US consumers remained resilient. A separate report said fewer US workers applied for unemployment benefits last week, an indication of a solid job market, while a third report said manufacturing in the mid-Atlantic region is better than economists expected.