Shopify shares jumped 7% after announcing a partnership with Meta to launch the Muse AI product, sending the Nasdaq Composite up 0.5% to a record high.
But the Dow Jones Industrial Average slipped nearly 200 points, ending the session lower, while the S&P 500 held steady at a flat line.
Financial names underperformed sharply; Allstate fell 5.5% and Charles Schwab dropped 6.1% as traders worried that AI will erode brokerage margins and fee streams.
Consumer‑service stocks such as Expedia and Planet Fitness dipped as concerns grew that AI assistants could replace human travel‑booking and price‑comparison services.
Market breadth remains weak: BTIG analyst Jonathan Krinsky noted 120 S&P 500 stocks hit 52‑week lows versus 45 hitting highs, a widening gap that signals uneven gains.
Oil prices cooled with Brent settling below $100 a barrel—$99.80 to be exact—while analysts anticipate that the broader AI wave may continue to press financials, potentially dragging the market down if earnings fail to keep pace.
Looking ahead, investors will watch the next earnings cycle for Shopify and other AI‑heavy stocks, while analysts have trimmed the S&P 500 year‑end target to 7,800 amid rising rates and cautious sentiment.