WS #15326
The S&P 500 and Dow Jones declined as the ISM Services PMI missed expectations with rising input costs, but the Nasdaq 100 surged 1.54%, highlighting a flight to quality in mega-cap technology. Despite Morgan Stanley's warning about AI chip power bottlenecks, Nvidia and AMD hit record highs, indicating the market views the supply chain as resilient. This decoupling suggests investors are prioritizing AI growth narratives over near-term macroeconomic softness.
Tech Decoupling and AI Resilience
The S&P 500 and Dow Jones declined as the ISM Services PMI missed expectations with rising input costs, but the Nasdaq 100 surged 1.54%, highlighting a flight to quality in mega-cap technology. Despite Morgan Stanley's warning about AI chip power bottlenecks, Nvidia and AMD hit record highs, indicating the market views the supply chain as resilient. This decoupling suggests investors are prioritizing AI growth narratives over near-term macroeconomic softness.