Stock market today: Dow, S&P 500, Nasdaq slip with all eyes on Nvidia earnings
US stocks moved lower early Wednesday as investors cautiously counted down to Nvidia's (NVDA) earnings report, seen as a crucial test of hopes for Big Tech amid tariff uncertainty.
The Dow Jones Industrial Average (^DJI) fell around 0.1% on the heels of Tuesday's tariff reprieve-driven rebound. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) both also declined more than 0.1%.
Nvidia's results are looming large as Wall Street looks for clues to AI demand, which has helped keep alive bullishness for stocks. Hopes are that the chipmaker will confirm that megacap techs can still drive gains even as trade-war fears prey on markets.
The AI bellwether is expected to report first quarter earnings after the bell on Wednesday. If it beats lofty targets for sales and profit — and crucially, delivers an upbeat outlook amid anti-China trade measures — strategists expect a broader rally in stocks.
Read more: The latest updates on Nvidia's earnings report
Before the bell, Macy's (M) posted narrow first quarter revenue and earnings beats, but it revised its 2025 outlook with tariffs uncertainty a factor. Meanwhile, Abercrombie & Fitch (ANF) shares soared over 24% in early trade as investors welcomed its quarterly report.
By subscribing, you are agreeing to Yahoo's
Terms
and
Privacy Policy
On the economic front, minutes from the Federal Reserve's meeting earlier in May are set for release later in the day. Investors are looking for additional insight into how policymakers view the economy, with the impact of President Trump's trade policy in high focus.
Read more: The latest on Trump's tariffs
Fresh data on Tuesday showed that US consumer confidence rebounded in May as Americans reacted to Trump thawing trade tensions with China earlier in the month. The stock market, meanwhile, delivered its early verdict on Trump delaying planned 50% tariffs on European Union goods.
Nations are now racing to cut deals with the Trump administration to avoid the planned US tariff hikes, with India reportedly the latest to offer to lower its own tariffs on some American products.
The Utilities (XLU) sector fell more than 1.3% leading the losses among the 11 S&P 500 (^GSPC) sectors.
Utilities are considered one of the more interest rate sensitive sectors and have lagged amid the recent rise in Treasury yields. The 10-year Treasury yield was up about 6 basis points and hovered just below 4.5% on Wednesday while the 30-year Treasury yield once again crossed above 5%.
The interest rate-sensitive Russell 2000 Index (^RUT) was also among the laggards on Thursday falling about 0.8%, far outpacing the 0.2% loss of the S&P 500.
Yahoo Finance's Ines Ferre reports:
GameStop (GME) stock sank more than 10% in early trading on Wednesday after the video game retailer announced it purchased 4,710 bitcoin (BTC-USD).
With bitcoin trading around $108,000 per token, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week.
In March, the company, led by billionaire Ryan Cohen, formally announced that its board unanimously approved adding the cryptocurrency as a treasury reserve asset.
Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin.
Read more here.
Nvidia's (NVDA) earnings and revenue beat Wall Street's expectations nearly every quarter over the past two years.
Over the past eight quarters, Nvidia's earnings per share exceeded Wall Street's projections by an average of 9.8%. Over that same time frame, Nvidia's quarterly revenue beat the Street by an average of 8.9%.
Meanwhile, S&P 500 companies reported earnings and sales roughly 5% and 1.3% above Wall Street's expectations in that time frame, according to Bloomberg data.
Only once in that period — during the second quarter of its fiscal year 2025 — did Nvidia's earnings miss forecasts. Its revenue has exceeded forecasts during each of the past eight quarters.
Read more here.
US stocks moved higher early on Wednesday as investors awaited a critical earnings report from AI bellwether Nvidia (NVDA).
The Dow Jones Industrial Average (^DJI) rose around 0.1% on the heels of Tuesday's tariff reprieve-driven rebound. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each inched up about 0.2%.
Yahoo Finance's Brian Sozzi reports:
Read more here.
Here's a look at some top movers trending ahead of the opening bell:
Abercrombie & Fitch (ANF) stock rocketed 27% higher in premarket trading after the retailer reported better-than-expected first quarter results and forecast strong annual sales. Adjusted earnings came in at $1.59 per share, beating expectations for $1.39 per share, as the company's Hollister brand has been resonating more with younger consumers, Reuters reported.
Trump Media & Technology Group (DJT) shares rose 2% after unveiling plans Tuesday to raise $2.5 billion to create a bitcoin (BTC-USD) treasury. The move will place bitcoin directly on the balance sheet of Trump Media, which owns the Truth Social platform. Bitcoin is hovering near all-time highs.
Okta (OKTA) stock tumbled 12% despite reporting better-than-expected earnings on Wednesday. The identity software company announced it would take a "prudent approach" to its financial outlook and reiterated its guidance, alluding to economic uncertainty.
Macy's (M) stock rose 4% after surpassing Wall Street's earnings expectations. But the company still faces questions about its future as management aims to turn the retailer around.
Joby Aviation (JOBY) shares surged 11% after Toyota (TM) invested $250 million in the electric vertical take-off and landing (eVTOL) aircraft maker, becoming its largest shareholder. Joby expects a second tranche of funding from Toyota, completing its $500 million commitment, will land later this year.
Nvidia (NVDA) stock traded slightly higher on Wednesday morning ahead of its earnings report after the closing bell, considered to be the most highly anticipated of the season. You can follow along with our live updates of Nvidia's results here.
Check out more trending tickers on the Yahoo Finance platform here.
GameStop (GME) stock rose early Wednesday as the company revealed a sizable bitcoin (BTC-USD) purchase.
Reuters reports:
As the report notes, the bitcoin play is the latest unorthodox move to draw investor interest to a brick-and-mortar video game seller that vaulted into the public consciousness during the 2021 meme-stock craze. GameStop's stock has been rallying in recent days amid bitcoin's surge to new highs.
GameStop's reveal comes a day after President Trump's media company, Trump Media & Technology Group (DJT), said it is looking to raise some $2.5 billion to buy bitcoin.
Read more here.
Macy's (M) stock gained 3% in premarket trading after the beleaguered retailer cleared a low bar for earnings expectations set by Wall Street.
Revenue fell 5.1% compared to the same period last year, and adjusted earnings per share dropped 40.7%, but both measures topped analyst estimates for the quarter.
Yahoo Finance's Brooke DiPalma reports:
Read more here.
Yahoo Finance's Hamza Shaban reports:
Read more here from today's Morning Brief.
Economic data: MBA Mortgage Applications (week ending May 23); Richmond Fed manufacturing index (May); FOMC meeting minutes (May meeting)
Earnings: Nvidia (NVDA), Abercrombie & Fitch (ANF), BMO (BMO), C3.AI (AI), Dick's Sporting Goods (DKS), e.l.f. Beauty (ELF), Macy's (M), Salesforce (CRM)
Investors are nervously awaiting Nvidia's (NVDA) earnings report on Wednesday, seeing it as an important sign for Big Tech amid unclear times with Trump tariffs.
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia suppliers fix Blackwell rack issues in boost to sales
Wall Street braces for Nvidia earnings
Trade truces are clearly bullish — but have a crucial flaw
Tariffs latest: Nations race to cut deals with Trump
Trump: Fannie Mae to keep US guarantee as public firm
YF Senior columnist Rick Newman: Why Trump is waging war on colleges
SpaceX Starship rocket fails to deploy satellites and explodes
Musk criticizes Trump's 'big, beautiful' spending bill
China deflation worries deepen even amid US trade truce
Bloomberg reports:
Read more here.
Okta (OKTA) stock dropped by 12% on Wednesday in premarket trading after the tech company reported its first-quarter earnings the day before.
Despite beating Q1 earnings and revenue estimates, the company reiterated its full-year revenue outlook, factoring in a potential risk related to the uncertain economic environment.
CEO, Todd McKinnon said: "Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow."
"The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases."
McKinnon explained that they would continue a "prudent approach to forward guidance… factoring in potential risks related to the uncertain economic environment for the remainder of FY26."
Oil rose today, with an OPEC+ meeting on the horizon to address potential supply issues. Meanwhile, the US is entering the early stages of prospective sanctions on Russia.
Bloomberg reports:
Read more here.
The Utilities (XLU) sector fell more than 1.3% leading the losses among the 11 S&P 500 (^GSPC) sectors.
Utilities are considered one of the more interest rate sensitive sectors and have lagged amid the recent rise in Treasury yields. The 10-year Treasury yield was up about 6 basis points and hovered just below 4.5% on Wednesday while the 30-year Treasury yield once again crossed above 5%.
The interest rate-sensitive Russell 2000 Index (^RUT) was also among the laggards on Thursday falling about 0.8%, far outpacing the 0.2% loss of the S&P 500.
Yahoo Finance's Ines Ferre reports:
GameStop (GME) stock sank more than 10% in early trading on Wednesday after the video game retailer announced it purchased 4,710 bitcoin (BTC-USD).
With bitcoin trading around $108,000 per token, the investment is valued at over $500 million. The token reached a record high north of $111,000 last week.
In March, the company, led by billionaire Ryan Cohen, formally announced that its board unanimously approved adding the cryptocurrency as a treasury reserve asset.
Subsequently, the meme stock tumbled nearly 25% in one session after the retailer said it intended to raise $1.3 billion via convertible senior notes to purchase bitcoin.
Read more here.
Nvidia's (NVDA) earnings and revenue beat Wall Street's expectations nearly every quarter over the past two years.
Over the past eight quarters, Nvidia's earnings per share exceeded Wall Street's projections by an average of 9.8%. Over that same time frame, Nvidia's quarterly revenue beat the Street by an average of 8.9%.
Meanwhile, S&P 500 companies reported earnings and sales roughly 5% and 1.3% above Wall Street's expectations in that time frame, according to Bloomberg data.
Only once in that period — during the second quarter of its fiscal year 2025 — did Nvidia's earnings miss forecasts. Its revenue has exceeded forecasts during each of the past eight quarters.
Read more here.
US stocks moved higher early on Wednesday as investors awaited a critical earnings report from AI bellwether Nvidia (NVDA).
The Dow Jones Industrial Average (^DJI) rose around 0.1% on the heels of Tuesday's tariff reprieve-driven rebound. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each inched up about 0.2%.
Yahoo Finance's Brian Sozzi reports:
Read more here.
Here's a look at some top movers trending ahead of the opening bell:
Abercrombie & Fitch (ANF) stock rocketed 27% higher in premarket trading after the retailer reported better-than-expected first quarter results and forecast strong annual sales. Adjusted earnings came in at $1.59 per share, beating expectations for $1.39 per share, as the company's Hollister brand has been resonating more with younger consumers, Reuters reported.
Trump Media & Technology Group (DJT) shares rose 2% after unveiling plans Tuesday to raise $2.5 billion to create a bitcoin (BTC-USD) treasury. The move will place bitcoin directly on the balance sheet of Trump Media, which owns the Truth Social platform. Bitcoin is hovering near all-time highs.
Okta (OKTA) stock tumbled 12% despite reporting better-than-expected earnings on Wednesday. The identity software company announced it would take a "prudent approach" to its financial outlook and reiterated its guidance, alluding to economic uncertainty.
Macy's (M) stock rose 4% after surpassing Wall Street's earnings expectations. But the company still faces questions about its future as management aims to turn the retailer around.
Joby Aviation (JOBY) shares surged 11% after Toyota (TM) invested $250 million in the electric vertical take-off and landing (eVTOL) aircraft maker, becoming its largest shareholder. Joby expects a second tranche of funding from Toyota, completing its $500 million commitment, will land later this year.
Nvidia (NVDA) stock traded slightly higher on Wednesday morning ahead of its earnings report after the closing bell, considered to be the most highly anticipated of the season. You can follow along with our live updates of Nvidia's results here.
Check out more trending tickers on the Yahoo Finance platform here.
GameStop (GME) stock rose early Wednesday as the company revealed a sizable bitcoin (BTC-USD) purchase.
Reuters reports:
As the report notes, the bitcoin play is the latest unorthodox move to draw investor interest to a brick-and-mortar video game seller that vaulted into the public consciousness during the 2021 meme-stock craze. GameStop's stock has been rallying in recent days amid bitcoin's surge to new highs.
GameStop's reveal comes a day after President Trump's media company, Trump Media & Technology Group (DJT), said it is looking to raise some $2.5 billion to buy bitcoin.
Read more here.
Macy's (M) stock gained 3% in premarket trading after the beleaguered retailer cleared a low bar for earnings expectations set by Wall Street.
Revenue fell 5.1% compared to the same period last year, and adjusted earnings per share dropped 40.7%, but both measures topped analyst estimates for the quarter.
Yahoo Finance's Brooke DiPalma reports:
Read more here.
Yahoo Finance's Hamza Shaban reports:
Read more here from today's Morning Brief.
Economic data: MBA Mortgage Applications (week ending May 23); Richmond Fed manufacturing index (May); FOMC meeting minutes (May meeting)
Earnings: Nvidia (NVDA), Abercrombie & Fitch (ANF), BMO (BMO), C3.AI (AI), Dick's Sporting Goods (DKS), e.l.f. Beauty (ELF), Macy's (M), Salesforce (CRM)
Investors are nervously awaiting Nvidia's (NVDA) earnings report on Wednesday, seeing it as an important sign for Big Tech amid unclear times with Trump tariffs.
Here are some of the biggest stories you may have missed overnight and early this morning:
Nvidia suppliers fix Blackwell rack issues in boost to sales
Wall Street braces for Nvidia earnings
Trade truces are clearly bullish — but have a crucial flaw
Tariffs latest: Nations race to cut deals with Trump
Trump: Fannie Mae to keep US guarantee as public firm
YF Senior columnist Rick Newman: Why Trump is waging war on colleges
SpaceX Starship rocket fails to deploy satellites and explodes
Musk criticizes Trump's 'big, beautiful' spending bill
China deflation worries deepen even amid US trade truce
Bloomberg reports:
Read more here.
Okta (OKTA) stock dropped by 12% on Wednesday in premarket trading after the tech company reported its first-quarter earnings the day before.
Despite beating Q1 earnings and revenue estimates, the company reiterated its full-year revenue outlook, factoring in a potential risk related to the uncertain economic environment.
CEO, Todd McKinnon said: "Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow."
"The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases."
McKinnon explained that they would continue a "prudent approach to forward guidance… factoring in potential risks related to the uncertain economic environment for the remainder of FY26."
Oil rose today, with an OPEC+ meeting on the horizon to address potential supply issues. Meanwhile, the US is entering the early stages of prospective sanctions on Russia.
Bloomberg reports:
Read more here.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New York Times
25 minutes ago
- New York Times
Pentagon Is Reviewing Deal to Equip Australia With Nuclear Submarines
The Trump administration is reviewing whether a security pact between the United States, Britain and Australia meant to equip Australia with nuclear submarines is 'aligned with the president's America First agenda,' a U.S. defense official said on Wednesday. When the deal was reached under President Joseph R. Biden Jr.'s administration in 2021, it was billed as crucial for countering China's growing military influence in the Asia Pacific. Now, its review appears to reinforce President Trump's skeptical and transactional approach to longstanding alliances, including demands that allies spend more on their own defense. The Pentagon official said the review would ensure that the pact, known as Aukus, met 'common-sense, America First criteria,' including ensuring that U.S. forces are at 'the highest readiness,' that allies are doing their part, and that 'the defense industrial base is meeting our needs.' The review was first reported by The Financial Times. Australia's defense minister, Richard Marles, said both Australia and Britain had been notified about the review and that all three nations were still committed to the deal. 'We've been aware of this for some time. We welcome it,' Mr. Marles said in a radio interview with ABC Melbourne on Thursday, Australia time. 'It's something which is perfectly natural for an incoming administration to do.' Australia sees the Aukus agreement as central to its defense strategy in the coming decades in a region increasingly shaped by China's assertive military posturing. Nuclear submarines can travel much farther without detection than conventional ones can and would enable the Australian Navy to greatly extend its reach. Under the pact, Australia is scheduled to receive secondhand Virginia-class nuclear submarines from the United States in the 2030s while scaling up the capacity to build its own, using a British design. But there has been concern in both Washington and Canberra about whether the United States can build new submarines to replenish its fleet quickly enough for the older ones to be transferred to Australia. Elbridge Colby, the U.S. under secretary of defense for policy, said during his Senate confirmation hearing in March that he was skeptical about the pragmatic feasibility of the deal. The Financial Times reported that Mr. Colby was heading up the Pentagon review. 'So if we can produce the attack submarines in sufficient number and sufficient speed, then great,' Mr. Colby said at the hearing. 'But if we can't, that becomes a very difficult problem.' Even before the review was announced, concern and anxiety had been building in Australia over whether it could continue to depend on its longstanding relationship with the United States, given the Trump administration's treatment of allies. Mr. Marles, the Australian defense minister, said in the radio interview that he was confident the Aukus deal would proceed because 'it's in the interests of the United States to continue to work with Australia.' Michael D. Shear contributed reporting from Washington.
Yahoo
26 minutes ago
- Yahoo
Senate GOP seeks to cut SALT cap, triggering fight with House
Senate Republicans indicated on Wednesday they are prepared to reduce the size of a key tax deduction in President Trump's 'big, beautiful bill' that was backed by moderates in the House, setting up a battle within the GOP over the divisive issue. The fight had long been expected, with senators saying they thought the state and local tax (SALT) deduction cap in the House-passed bill was too large and too expensive, but the hardening of the plan in the upper chamber threatens to delay progress on the bill and raises further questions about meeting the GOP's self-imposed July 4 deadline. 'There's a gap between where we are and where the House is. … [It's] likely going to be a lower number,' said Sen. Steve Daines (R-Mont.), a top adviser to Senate Majority Leader John Thune (R-S.D.), adding that the Senate GOP has not yet zeroed in on what that number will be. Senate Republicans emerged from a conference meeting Wednesday where key committees laid out their portions of the bill and lawmakers discussed numerous changes on the table. Several contentious issues remained unresolved, with only two legislative weeks to go until the July 4 recess. But multiple senators told The Hill that the chamber appears ready to chop down the $40,000 SALT cap, which was painstakingly negotiated between Speaker Mike Johnson (R-La.) and House GOP moderates from New York, New Jersey and California who have warned not to touch it. Senate Finance Committee Chairman Mike Crapo (R-Idaho), one of the members who led the meeting, was insistent that the cap would fall below $40,000, one Senate Republican said. It's unclear exactly what number Republicans in the upper chamber are eyeing, but Bloomberg News reported it was $30,000. 'There was never a number specifically discussed other than the House's [$40,000] — and it's a lot,' Sen. Kevin Cramer (R-N.D.) told reporters. 'No surprise that there's an interest in reducing it.' The current cap sits at $10,000, which was set in place in the 2017 Tax Cuts and Jobs Act. Senate Republicans have been fine with an increase in the cap, but many believed the $40,000 total for individuals making $500,000 or less was overzealous. A number of Senate Republicans have balked at some of the cost-cutting proposals in the bill the House sent and are looking for other ways to save money. Not a single Senate Republican hails from a high-tax blue state that would benefit from a higher SALT deduction cap. But the $40,000 figure was painstakingly negotiated by Johnson and House moderates, several of whom threatened to tank the whole bill over it. And any Senate changes would been to be approved by the House. For weeks, Republicans in the SALT Caucus have warned that they will not accept a lower cap. 'The compromise has already been made in the House. $40,000 is the figure that unlocks the rest of the bill,' Rep. Nick LaLota (R-N.Y.), a SALT member, told The Hill. 'It's not a number to be bargained down from.' The Wednesday conference meeting, led by Crapo and Agriculture Committee Chairman John Boozman (R-Ark.), also focused on other changes the Senate is looking to make to the House-passed legislation. Among those is a proposal to scale back provisions that would place more of the cost burden of the Supplemental Nutrition Assistance Program (SNAP) onto states. A number of Republican senators were turned off by the House's language. GOP lawmakers are attempting to have all portions of text by the end of next week, which is truncated by the Juneteenth holiday. But several of the issues that GOP holdouts in the Senate have named as sticking points — including Medicaid and green energy tax credits — remain unresolved. Republicans admit there is still much work to do in that time. 'Imagine a jigsaw puzzle with 3,000 pieces — and no picture,' Sen. John Kennedy (R-La.) said after the meeting. 'That's what we're trying to put together.' Sen. Markwayne Mullin (R-Okla.), a top ally of Thune, labeled that deadline for committees as an 'aspirational goal,' with the entire bill potentially hitting the floor by Monday, June 23 to kick off consideration. If that happens, a vote-a-rama could take place by that week's end. He admitted all those are lofty plans. 'We work really good on deadlines,' Mullin said. 'Without deadlines, we don't ever work.' Sen. Ted Cruz (R-Texas) said on Wednesday morning that he does not believe July 4 is a realistic deadline for the bill to hit Trump's desk given that roughly one-third of the bill is set to be revised by the upper chamber. 'And so I think the Senate will vote it out right before the July 4 recess, and then, I think it is likely that we will spend the month of July in conference and trying to reconcile the two,' Cruz said at an event hosted by Punchbowl News. 'The Senate bill is going to be markedly different from the House,' he continued. 'My guess is the Senate bill will track the House bill, maybe 60 to 70 percent. There are a lot of good provisions. A lot of the broad outlines are going to be similar, but it's the Senate. So the Senate is going to do what it damn well wants to do and that's a good process.' When asked if the deadline is realistic, Sen. Mike Rounds (R-S.D.) was unsure. 'Maybe,' he said, noting that a number of members are awaiting scoring from the Congressional Budget Office. And a number of members still need to be won over. Sen. Susan Collins (R-Maine), a key lawmaker who remains up for grabs, told reporters that she has questions about Medicaid changes and is still 'deliberating.' The possibility of work stretching close to the nation's birthday led Thune on Wednesday to warn that he is prepared to keep members in Washington until they complete work on the mammoth bill. Senators are slated to be back in their home states from June 28 through July 6 for the break, giving them just north of two weeks to get everything done. The afternoon meeting was not the only conference discussion about the sprawling bill for the Senate GOP. Border czar Tom Homan appeared hours earlier at a weekly luncheon hosted by the Senate Steering Committee, which is composed of the GOP's most conservative members. Homan pressed lawmakers to approve the tax package in order to unlock funding included for the border as Immigration and Customs Enforcement officials are running out of beds for detained migrants. According to Sen. John Hoevan (R-N.D.), Homan told members that ICE currently has 55,000 individuals detained, but only 41,000 beds. 'That's a problem,' Hoevan told reporters. 'The biggest pitch he had was: There are still about 600,000 people out there who are here illegally who have criminal records, so he needs this funding for the bed space.' More meetings are set for the coming days, including at the White House on Thursday when Thune and Crapo are expected to huddle with Trump. 'It's going to be an interesting week or two,' said Sen. Josh Hawley (R-Mo.), one of the remaining holdouts. Emily Brooks contributed. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Miami Herald
27 minutes ago
- Miami Herald
Apple WWDC underwhelms fans in a crucial upgrade
Do you know about Asch conformity experiments? Solomon Asch performed them in the 1950s. He invited individuals into the lab and asked them to judge the length of a line. He also placed 6 actors in the same room who were assigned to give the wrong answers so that the ignorant subject could hear them before he provided his own answer. On average, 35% of the subjects followed the opinions of the actors even if their answer was obviously wrong. That is horrifying. What is even worse is that the study has been replicated numerous times. Now, imagine a scenario in which the actors are given money immediately after giving the wrong answer, and the subject can see that too. What would be the percentage of subjects that gave the wrong answer then? Related: Google resolves major privacy issue That study hasn't been done, but I think we are witnessing something similar unfolding in the tech space. Marketing is everything. If artificial intelligence were called "pattern matching and transformation," it would not sound so cool, would it? Alas, there is precisely zero intelligence in AI. It is just pattern matching and transformation. This is why it hallucinates so much. The farther away from its training data the query you give to the AI is, the crazier the reply you'll get. Public companies don't do marketing just for consumers; they also need to attract investors. And when everyone around you starts hyping AI to attract investors, you may find yourself in a dilemma - is it OK to promise something you probably can't deliver? Apple (AAPL) seems stuck in this dilemma but also faces significant pressures outside Trump's threat of a 25% tariff on iPhones not manufactured in the U.S. put Apple under pressure. The company expects tariffs to add $900 million to its costs for the current quarter. I've already written why large language models can't become sentient. But Apple can't afford to say that. They carefully dance around it by occasionally releasing a research paper on AI's limitations, but that usually looks like a jab at the competition. The company's management probably feels like a person in Asch's experiment, except that the actors are the competitors. Rivals promise stuff from science fiction, but that is still attracting investors. Chaos created by unrealistic marketing is real. Microsoft recently invested in an AI company that went bankrupt. The company had no AI but a huge number of humans doing the work. Related: Elon Musk's DOGE made huge mistakes with veterans' programs Anthropic launched its AI blog in June, seemingly planning to show that AI can replace writers. They killed this project after just one week. It looks like AI companies are playing a game of telephone on the inside, and that is how that project got greenlit. More Tech Stocks: Palantir gets great news from the PentagonAnalyst has blunt words on Trump's iPhone tariff plansOpenAI teams up with legendary Apple exec Apple is held to a much higher standard by consumers than other companies. The company can't afford the luxury of delivering subpar products. In a world full of people with crippled attention spans from watching TikTok and YouTube shorts, Apple delivered an hour and a half of pure boredom. I don't have a problem watching long informative videos, but this one wasn't that. Thank you, YouTube, for the video speed settings-a lifesaver. Apple has veered off course due to pressure. Their new design language, Liquid Glass, isn't original. Windows Aero was trendy in 2006. The Linux desktop environment KDE Plasma has featured numerous transparent/glass themes over the last 17 years. Related: Nvidia's latest project may supercharge quantum computing Yes, Apple did it with more polish. But transparency and monochrome icons ruin accessibility. They are cool-looking only if you are a child. You don't have time for distractions if you have work to do. As for the big AI reveal that some people were hoping for, there wasn't one. The best feature they presented was a call translator. I am not sure how many people need it, but those who do will greatly appreciate it. Long-time fund manager Chris Versace, wrote on TheStreet Pro "It is hard to disagree, at least for now, that Apple is taking, as some have called it, a "gap year" on Apple Intelligence, but one of the great advantages the company has is its developer community and that's the core audience for WWDC." Apple used to have a slogan, "Think different." Well, if the company thinks differently, it ain't showing it. Related: Popular cloud storage service might be oversharing your data The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.