Analysts are too conservative in their outlook for artificial intelligence spending next year, according to Goldman Sachs Group Inc. strategists, who expect further gains for stocks linked to the theme. The team including Ryan Hammond sees hyperscaler spending climbing to as much as $1.4 trillion in 2027, supported by strong cash flows and additional investment-grade debt funding. This contrasts w...
Analysts are too conservative in their outlook for artificial intelligence spending next year, according to Goldman Sachs Group Inc. strategists, who expect further gains for stocks linked to the theme. The team including Ryan Hammond sees hyperscaler spending climbing to as much as $1.4 trillion in 2027, supported by strong cash flows and additional investment-grade debt funding. This contrasts with current analyst estimates of about $920 billion. Increased investment would support further earnings growth in AI infrastructure companies, the strategists said. While the sector’s shares have already rallied significantly, the team argued the gains have been driven by improving profit expectations. Oracle Corp. shares slumped in premarket trading Thursday after the firm reported quarterly capital expenses that exceeded estimates, largely for data centers. While the capex numbers from Oracle triggered investor concerns, they also sparked gains in chipmakers and other AI infrastructure names. Valuation concerns are rising, the Goldman team noted. The median multiple for AI infrastructure companies has risen to 26 times price-to-earnings, the highest since OpenAI’s ChatGPT launch in late 2022. Still, the recent rerating has been concentrated in semiconductor and power-related companies outside utilities, rather than in hyperscalers or memory stocks, they said. In a separate note ahead of SpaceX’ s much-anticipated blockbuster listing, Hammond’s colleague Ben Snider , who is chief US equity strategist, said the record US equity issuance is unlikely to derail the current bull market. He reiterated his year-end target of 8,000 points for the S&P 500 Index, citing continued earnings growth.
Market Snapshot S&P 500 futures 7,333.75 +0.8% Nasdaq 100 futures 28,907.25 +1.2% Stoxx Europe 600 Index 622.83 +0.8% US 10-year Treasury yield 4.53% -0.03 WTI crude oil futures $89.32 -0.8% Market data as of 06:16 AM ET. Data is subject to provider delays. Five things you need to know S&P 500 futures are rising even as President Trump threatens more strikes against Iran on Thursday. Brent has rev...
Market Snapshot S&P 500 futures 7,333.75 +0.8% Nasdaq 100 futures 28,907.25 +1.2% Stoxx Europe 600 Index 622.83 +0.8% US 10-year Treasury yield 4.53% -0.03 WTI crude oil futures $89.32 -0.8% Market data as of 06:16 AM ET. Data is subject to provider delays. Five things you need to know S&P 500 futures are rising even as President Trump threatens more strikes against Iran on Thursday. Brent has reversed gains to trade near $92 a barrel. Treasury yields fell across the curve. Oracle shares declined in premarket trading after the company reported quarterly capital expenses that were higher than estimates. That’s raising concerns about the profitability of the AI infrastructure business. SpaceX’s IPO has attracted demand for more than four times the available shares, according to people familiar with the matter. The stock is set to start trading on Friday. The European Central Bank is poised to raise interest rates , judging it can no longer ignore the upswing in inflation caused by the Iran war. (More on that later in the newsletter.) Shares of Alibaba Group Holding and JD.com slid after Chinese regulators scolded leading e-commerce players for what it called misleading promotions. Wall Street’s worries Global stocks are close to record highs, but that doesn’t mean Wall Street is preparing for a care-free summer. Across bonds, credit and equities, some of the biggest names in investing are putting their worries on record: PIMCO warns that the “credit loss cycle is upon us.” The firm, which manages $2.3 trillion in assets, says the AI buildout could leave weaker and more heavily leveraged borrowers exposed. Jim Chanos, a veteran short seller, says the SpaceX IPO is being driven more by investor enthusiasm for Elon Musk and AI than by financial fundamentals. He calls it a “hopes-and-dreams IPO.” Alternative asset manager KKR sees long-dated government bonds struggling as inflation remains high. For investors, that means assets that once acted as risk-free “shock absorber...
Justin Sullivan/Getty Images News Schwab Asset Management ( SCHW ) has announced an immediate reduction in the operating expense ratios for four of its core equity index ETFs, effective June 11, 2026. The fee reductions apply to the Schwab U.S. Mid-Cap ETF ( SCHM ) and Schwab U.S. Small-Cap ETF ( SCHA ), both of which dropped from 0.04% to 0.03%, alongside the Schwab International Small-Cap Equity...
Justin Sullivan/Getty Images News Schwab Asset Management ( SCHW ) has announced an immediate reduction in the operating expense ratios for four of its core equity index ETFs, effective June 11, 2026. The fee reductions apply to the Schwab U.S. Mid-Cap ETF ( SCHM ) and Schwab U.S. Small-Cap ETF ( SCHA ), both of which dropped from 0.04% to 0.03%, alongside the Schwab International Small-Cap Equity ETF ( SCHC ) and Schwab Emerging Markets Equity ETF ( SCHE ), which were lowered to 0.06% from 0.08% and 0.07%, respectively. Following these adjustments, 16 out of Schwab’s 24 market-cap-weighted index equity and fixed-income ETFs are now priced at just 3 basis points (bps). This strategic cost reduction allows investors to build highly diversified domestic or global index portfolios at minimal cost; for example, a diversified portfolio utilizing these funds would carry an expense ratio range of just 3 bps to 8 bps, translating to roughly $3 to $8 in annual fees for every $10,000 invested. More on Charles Schwab The Charles Schwab Corporation (SCHW) Analyst/Investor Day - Slideshow Schwab Remains Highly Attractive The Charles Schwab Corporation (SCHW) Analyst/Investor Day Transcript Which brokerages are scrapping pattern day trading rules today? Charles Schwab introduces 24/7 trading for select crypto futures
Stock index futures were higher before the bell as Washington said it has "completed" strikes against Iran. Now, here are 5 news stories that broke overnight to watch out for: Palantir CEO warns of AI lab tensions: Palantir Technologies ( PLTR ) CEO Alex Karp raised concerns over growing friction between enterprise customers and frontier AI labs as the industry moves rapidly toward public listing....
Stock index futures were higher before the bell as Washington said it has "completed" strikes against Iran. Now, here are 5 news stories that broke overnight to watch out for: Palantir CEO warns of AI lab tensions: Palantir Technologies ( PLTR ) CEO Alex Karp raised concerns over growing friction between enterprise customers and frontier AI labs as the industry moves rapidly toward public listing. Speaking with CNBC on Wednesday, Karp said enterprise clients are increasingly "unhappy" with how leading frontier labs operate, noting that in private conversations, "every single enterprise we deal with" expresses frustration. Many believe frontier labs lack real understanding of business needs and are focused on "tokenmaxxing"—aggressively burning AI tokens to show usage and output. Musk to unveil Terafab vision at ASML event : Elon Musk is expected to appear virtually at ASML's ( ASML ) annual technology conference on Thursday, where he will discuss Terafab, his proposed semiconductor manufacturing venture aimed at supplying chips for Tesla ( TSLA ) and SpaceX. "Musk will share his vision on AI, robotics, space, and semiconductor manufacturing," an ASML spokesperson said in a statement to Reuters. Canada targets social media with youth ban: Canadian Prime Minister Mark Carney's government introduced legislation on Wednesday that would ban social media access for users under 16 unless platforms meet safety standards , following a similar move by Australia. The proposed law would affect major social media platforms, including Meta Platforms ( META ) and X, while also imposing new obligations on AI chatbot providers, though they would not face a ban on youth users. Toyota, and JLR push back on EU local sourcing rules : Toyota ( TM ) and Jaguar Land Rover have warned that the European Union's proposed "Made in Europe" rules could undermine investment, jobs, and competitiveness across the region's automotive sector, according to the Financial Times. The concerns center on t...
SpaceX will debut on the public markets, having raised at least $75 billion at a valuation of $1.78 trillion, making it the largest initial public offering ever.
SpaceX will debut on the public markets, having raised at least $75 billion at a valuation of $1.78 trillion, making it the largest initial public offering ever.