economy
Alphabet slumps on more AI brain drain. We're not too worried
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- The S&P 500 is trading near flat, and the Nasdaq is down 0.4% as investors pause after recent gains.
- Optimism regarding a Strait of Hormuz reopening deal has supported stock prices.
- Nvidia's stock increased over 4% after Elon Musk announced SpaceX will exclusively use its AI chips.
- Eli Lilly's stock rose about 4% due to sustained demand for its weight-loss and diabetes drugs.
- Alphabet shares declined amid news of leadership changes and departures of key AI talent from Google DeepMind.
- Demis Hassabis is stepping down as CEO of Google DeepMind to become chairman and chief scientist, while CTO Koray Kavukcuoglu will oversee AI model development.
- Google's chief scientist Jeff Dean and three other veterans are leaving to co-found an independent ML/AI research corporation.
- Honeywell Aerospace is set to report earnings after the market close, with its management expected to discuss performance and growth plans.
- Other companies reporting earnings include Sandisk, Western Digital, AppLovin, elf Beauty, Axon Enterprise, and Dutch Bros.