AI stocks rebound, and why J&J's earnings guidance cut is not cause for concern
📰 source: cnbc_topnews · 💼 business
the nasdaq composite rose more than 2.5% on thursday, its best session in over a month, as ai stocks rebounded sharply. chipmakers micron and amd jumped over 17% and 13%, respectively, with nvidia and broadcom also up. the catalyst: situational awareness, an ai-focused hedge fund, agreed to sell its entire public stock portfolio to citadel, ending forced selling that had weighed on the sector. jim cramer said clearing out sellers helps establish a bottom. club holdings qnity and corning rose almost 8%, and both were upgraded to buy-equivalent ratings.
meanwhile, j&j cut its full-year adjusted earnings guidance to $10.96-$11.11 from $11.60-$11.75, but the reduction reflects acquisition-related r&d charges and deal accounting, not underlying business deterioration. shares fell as money rotated back into ai names. other laggards included salesforce, adobe, workday, and eli lilly. next up: earnings from apple, amazon, linde, and eaton.
why it matters: ai stocks surge as forced selling clears out, signaling a potential bottom; j&j's guidance cut is acquisition-related, not operational weakness.
source: cnbc_topnews
sentiment: +0.30 · impact: 0.60