US Stocks Fall as Hotter-Than-Expected PPI Halts Record Run
The S&P 500 Index dropped 0.3% at 9:43 a.m. in New York, ending a two-session win streak. The Nasdaq 100 Index declined 0.1%. The Cboe Volatility Index hovered at around 15.
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Yahoo
16 minutes ago
- Yahoo
2 top AI-related stocks for investors to consider buying!
Companies linked to artificial intelligence (AI) have become highly coveted stocks to buy. We're mainly talking about US tech shares like Nvidia, whose semiconductors power advanced AI models, and businesses like Microsoft, Meta, and Alphabet that are integrating AI into their existing operations. Many investors worry that these AI shares now command sky-high valuations. They fear this leaves them at risk of price corrections if the stocks' momentum slows. But investors don't need to buy these pricey US stocks to target large returns from the AI boom. Here are two UK shares to consider for the new tech revolution. Riding the data centre boom Sophisticated AI models require thousands of chips working in tandem, meaning small server rooms just don't cut it anymore. This is driving demand for industrial-sized data centres with sophisticated cooling systems and robust power infrastructure. This provides an enormous opportunity for warehouse operators like Tritax Big Box (LSE:BBOX). Accordingly, the FTSE 250 real estate investment trust (or REIT) — which chiefly rents it large-scale spaces out to delivery companies, retailers, and fast-moving consumer goods (FCMG) companies — is pushing aggressively into data centres. The company acquired its first data hub site in January, which it predicts will be 'one of the largest data centres in the UK'. And it followed this with a second shortly afterwards. The sites — which have a combined potential capacity of 272 MW — are in well-connected locations in London and have scope for long-term expansion. With a pipeline of another 1 GW, Tritax is positioning itself as a major player in the digital infrastructure boom. The UK currently has 477 data centres in operation. And construction firm Barbor ABI believes almost another 100 new sites will be needed between now and 2030 to meet demand. This provides a wonderful growth opportunity for the likes of Tritax. Be mindful, though, that data centre development carries risks. Like its logistics and storage hubs, returns are at the mercy of rising build costs and interest rates. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Another top AI-related stock Cable maker Volex (LSE:VLX) is another great data centre play to consider. The high-speed cables it manufactures are essential tools in ensuring a reliable and fast-moving data connection. More specifically, the company is a pioneer in the direct attach cables (DACs) segment. These are especially critical for AI applications, as they facilitate high bandwidth with minimal latency. And they are helping to drive business with both new and existing customers. Volex sells its cables across the world, leaving it exposed to trade tariff-related pressures. But these troubles haven't yet derailed its ability to deliver strong revenues growth — organic sales leapt 10.4% at constant currencies between April and June. The business said its latest sales numbers reflect 'continued momentum in the Electric Vehicles and Complex Industrial Technology end-markets, notably among Data Centre customers'. As well as data centres, Volex has exposure to multiple other growth areas like electric cars, renewable energy, healthcare, and automation. This provides added profit-making opportunities, while simultaneously broadening its sales base and reducing reliance on any single market to drive earnings. I think it's a great all-rounder to consider for the booming digital economy. The post 2 top AI-related stocks for investors to consider buying! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet, Meta Platforms, Microsoft, Nvidia, and Tritax Big Box REIT Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
16 minutes ago
- Yahoo
Bank of America shares an eye-popping chart showing a potential stock-market bubble: 'It better be different this time'
AI optimism is driving the S&P 500 price-to-book ratio to records, surpassing dot-com levels. High valuations reflect expectations for AI-driven earnings. While the ratio's level is head-turning, it doesn't necessitate that stocks are in a bubble. Stock-market bulls convinced of the power of AI to transform the economy often shrug off comparisons to the dot-com bubble a quarter century ago. The real profits are already showing up, unlike in the early days of the internet boom — so it is different this time, the thinking goes. But Bank of America strategist Michael Hartnett has a message for these investors: "It better be different this time." Hartnett, who has often expressed skepticism of the market's bull run over the last few years, shared a head-turning chart that highlights just how optimistic investors have become about the impact AI will have. It shows the S&P 500's price-to-book ratio, which measures the total market cap of the index's constituents compared to their total assets minus liabilities. The valuation measure is at a record high of 5.3, topping the 5.1 level seen in March 2000, at the peak of the dot-com bubble. Other classic valuation measures show market froth relative to history. For instance, Hartnett also shared a chart showing the S&P 500's 12-month forward price-to-earnings ratio. Except for August 2020, it's at the highest level since the dot-com era. And the Shiller cyclically-adjusted price-to-earnings ratio, which measures current prices against a 10-year rolling average of earnings, is at similar levels to 1929, 2000, and 2021. High valuations reflect high expectations for future earnings. Sometimes those expectations turn out to be too elevated, and prices correct, but they don't necessitate a bubble scenario. So far, many AI firms have continually beat earnings expectations, suggesting the optimism could be justified. Valuations are also better predictors of average long-term returns than near-term performance, and views on Wall Street on where the market goes in the months ahead differ. Though there are calls for caution, many strategists continue to raise their year-end S&P 500 price targets. Earlier this week, Rick Rieder, the chief investment officer of global fixed income at BlackRock, said the market is in the "best investing environment ever" thanks to factors like strong demand for stocks, looming rate cuts, and recent boosts in productivity and earnings growth. If the market does start to unwind, however, Hartnett said he sees bonds and non-US stocks benefiting. Examples of funds that offer exposure to these trades include the iShares Core U.S. Aggregate Bond ETF (AGG) and the Vanguard FTSE All-World ex-US ETF (VEU). Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
19 minutes ago
- CBS News
Frank Day, former Colorado restaurateur and historic hotel owner, dies at 93
Frank Day, who created a food and beverage empire in Colorado, has died at the age of 93. He died on Wednesday after battling an illness. For over 50 years, Day operated some of the most beloved restaurants, hotels and breweries in the Denver metro area. On Friday, Concept Restaurants announced Day's passing, stating, "We are saddened to confirm the passing of Frank Day, in Boulder, CO, after a brief illness. He touched the lives of many, and his absence will be deeply felt. Our thoughts are with his family, friends, colleagues and all who knew him. The family will provide further information in due course, and we ask that their privacy be respected during this difficult time." Day founded Concept Restaurants and operated over 80 hospitality businesses, including the Hotel Boulderado, Denver's Stout Street Social, Rock Bottom Brewery and Old Chicago Pizza. He was honored for his contributions to Colorado's hospitality industry in 2024 when he was inducted into the Denver & Colorado Tourism Hall of Fame. In a 2024 interview with Yellow Scene, Day said, "It's a people business. It's 110% all about how people operate. A successful restaurant is a successful team put together. If you keep them growing in one direction, it will keep going." He said it's important to hire people who take pleasure in helping others and "have the heart of a servant." He and his wife, Gina Day, also contributed to the future of those hoping to enter the hospitality industry. In 2019, they donated $1 million to Metropolitan State University of Denver's Hospitality program. Their name also sits on MSU Denver's Gina and Frank Day Health Institute.
