Analysts said the impact should be moderate, given that the fees apply only to new applications, but warned that a constrained supply of skilled workers in the U.S. may push wages higher and squeeze margins. Companies including Microsoft, Amazon, Alphabet and Goldman Sachs were among those that sent urgent emails to their employees with travel advisories.
When I saw a man walking down Prince Street in canary yellow pants, a bright blue Aviator Nation sweatshirt, custom sneakers, and a hat that said "GOAT," I knew my wait was over. I was meeting up with Dan Ives, who isn't just a well-known tech analyst and major Tesla bull, but also something of a fashion icon. CNBC is used to guys in Brooks Brothers,but when Ives is on, it's Lilly Pulitzer blazers and lots of hot pink.
Stocks have been hitting records in large part because Wall Street is expecting the economy to pull off a delicate balancing act: slowing enough to convince the Federal Reserve to cut interest rates, but not so much that it causes a recession, all while inflation remains under control. Many things must go right for that to happen, and an encouraging signal came from Wednesday's report showing that inflation at the U.S. wholesale level unexpectedly slowed in August.
Shares of Google parent Alphabet ( GOOGL) climbed late Tuesday after a federal judge issued a ruling on remedies in the U.S. government's antitrust lawsuit involving the tech giant's internet search business. Google stock had been expected to fall after the ruling, but rose instead. Meanwhile, Apple ( AAPL) stock also rose. Judge Amit Mehta of the U.S. District Court of the District of Columbia ruled that Google can keep its Chrome browser.
There are now almost 500 AI unicorns - companies valued at over $1 billion - worth a total of roughly $2.7 trillion, enough to do some serious damage to the economy if things don't go well. But for investors, that cash represents a dream: that AI will someday do more than generate video essays explaining that Nubian giants built the pyramids, and become a major financial driver.
Tech stocks could remain under pressure after they led Wall Street lower on Tuesday, with the Nasdaq dropping 1.4% and the S&P 500 slipping 0.6%. Losses were widespread among chipmakers, where Nvidia slid 3.5%, AMD fell more than 5%, and Broadcom lost more than 3%. Palantir was the weakest S&P 500 performer, plunging 9%. The selloff reflected investor caution ahead of the Federal Reserve's annual Jackson Hole symposium, where Chair Jerome Powell is due to speak on Friday.
Palantir's revenues soared nearly 50% to almost $1 billion and net income increased 144%, boosting investor confidence in AI’s role in tech growth and job reduction.
