Technology stocks fell this week while the Dow rose, as hotter-than-expected inflation data pushed investors toward dividend-paying value stocks amid expectations of higher interest rates. A Gartner report warned that 80% of neocloud companies could shut down or merge by 2030 due to a mismatch between AI infrastructure spending and achievable revenue, intensifying fears about the AI trade. Big tech earnings, expected in a couple of weeks, will be pivotal in confirming or contradicting this pullback. The review also covers ASML, Johnson & Johnson, Tesla, Amazon (committed $220 billion to AI), Royal Caribbean ($3 billion stake in the company behind Sandals resorts), and Broadcom ($60 billion in financing tied to Anthropic). It also highlights sectors and stocks to watch ahead of the holiday shopping season.
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