Newzstocks are climbing Monday amid shaky trading for financial markets worldwide, as AI stocks keep swinging and Brazilian stocks tumble.The S&P 500 rose 0.7% and more than recovered its losses from last week, pulling within 1.6% of its all-time high set earlier this month. The Dow Jones Industrial Average was up 78 points, or 0.1%, as of noon Eastern time, and the Nasdaq composite was 0.9% higher.The strongest lift for the market came from Nvidia, which rose 2.2%. That helped the chip company recover some of its drop from three straight losing weeks, its longest such streak since June, and maintain its position as the largest stock on Wall Street above Apple.But stocks elsewhere in the artificial-intelligence industry remained unsettled.
They’ve been swerving on worries about whether their industry’s boom is under threat because of how expensive it’s become for companies to borrow money to build data centers and buy more AI chips.Meta helps lead the swingsMeta Platforms bounced up and down after outlining plans to raise $35 billion by selling stock to help pay for its AI investments. It also said it could raise another $60 billion by selling shares of a new class of its stock once it begins trading. Meta's stock initially dropped more than 2%, but it quickly flipped to a gain and then pulled back to a loss of 0.3%.Meta said Nvidia, Advanced Micro Devices and Broadcom have already indicated they may buy a total of $5 billion of stock in its offering.
That's a signal of strong interest from big chip companies that stand to benefit from additional AI investments. But it also gives fuel to critics of “circular financing” who say it raises the risk if AI isn't as successful as expected.Worries remain about borrowing for AISpaceX, Elon Musk’s rocket company that also runs the xAI business, had similar swings. It opened with a loss and then flipped to a gain of 1.2% after it agreed to a roughly $40 billion deal with an entity managed by Apollo Global Management to lease AI computing power.Musk warned over the weekend that hundreds of companies that rent out AI computing power are under threat because of the difficulty to borrow money, saying on his social-media platform, X, that they could face “guppy-level death and consolidation.”CoreWeave, a company that's borrowed money to buy AI computing power that it rents to customers, has been at the ce…
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