US stocks clawed back losses Thursday following a multi-day tech selloff, as investors flocked to safer assets on concerns the AI buildout could falter in the face of weak consumer demand and high inflation.
US producer prices increased at the fastest pace in four years in September, new data showed, bolstering the case for the Federal Reserve to hike rates this month. Bumper earnings from AI-exposed firms this week have failed to quell fears that higher rates could halt or slow the debt-fueled data center buildout that’s currently powering the US economy.
Still, some of the AI trade’s biggest spenders appear undeterred: TSMC said Thursday it was building plants at an “unprecedented pace” and could expand its US footprint further on “extremely robust” AI demand.
— Brendan Ruberry