The Nasdaq and S&P 500 reached record highs on Tuesday but surrendered much of their weekly gains after AI stocks fell on Thursday. The indexes recovered some ground on Friday and still finished with modest advances. The Dow Jones edged higher but remained in a downtrend.
Small-cap stocks moved in the opposite direction. The Russell 2000 fell sharply to around its 200-day line, leaving it near correction territory. Treasury yields changed little after the 10-year yield reached a fresh 24-year high, while crude oil prices ended roughly flat despite day-to-day swings.
AI demand concerns intensified after OpenAI told investors that its annualized revenue was $50 billion, below an earlier $70 billion figure that reflected inaccurate investor assumptions. The lower figure fueled a sell-off in AI stocks and raised questions about the strength of demand behind heavy AI spending. Those losses eased after OpenAI said annualized revenue could reach or exceed $70 billion by year-end. Software stocks rose during the week, while chip and AI shares fell, and biotechs and many medical-testing companies also declined.