Financial Markets                      02/12 09:28

   

   NEW YORK (AP) -- U.S. stocks are drifting in mixed trading Thursday as the 
market splits further between perceived winners and losers from the rush into 
artificial-intelligence technology.

   The S&P 500 rose 0.2% and was sitting a bit below its all-time high set late 
last month. The Dow Jones Industrial Average was up 267 points, or 0.5%, as of 
10:15 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

   On the winning side of the market was Equinix, which jumped 11.6% even 
though the digital infrastructure company's results for the latest quarter came 
up short of analysts' expectations. It gave financial forecasts for 2026 that 
topped analysts' expectations, and CEO Adaire Fox-Martin said that "demand for 
our solutions has never been higher."

   The company's data centers are helping to power the world's move into AI.

   So are Nvidia's chips, and its stock ticked up by 0.9%. Because the AI 
frenzy has turned Nvidia into Wall Street's most valuable stock, the chip 
company was the strongest single force lifting the S&P 500.

   At the same time, some companies are feeling the downside of the rush into 
AI.

   AppLovin fell 15.5% even though it reported a stronger profit for the latest 
quarter than analysts expected. Like other software companies, it's come under 
pressure recently from worries that AI-powered competitors will steal 
customers, and its stock came into the day with a loss of 32.2% for the young 
year so far.

   AppLovin CEO Adam Foroughi pushed back on such worries, saying in a 
conference call with analysts that indicators show his company is doing well. 
"There's a real disconnect between market sentiment and the reality of our 
business," he said.

   Cisco Systems sank 9.8% despite likewise topping analysts' expectations for 
profit and revenue last quarter. The tech giant indicated that it may make less 
profit off each $1 of revenue during the current quarter than it did in the 
past quarter.

   Analysts said that could be an indicator of higher prices for computer 
memory that everyone is having to pay amid a rush driven by AI.

   More broadly, questions are rising about whether the businesses spending 
heavily on AI and paying companies like Equinix and Nvidia will end up seeing 
high-enough profits and productivity to make the investments worth it.

   Outside of tech, McDonald's swung between gains and losses and then rose 
0.3% after reporting a stronger profit for the latest quarter than analysts 
expected. The restaurant chain credited moves to improve its value and 
affordability, including cutting prices on some U.S. combo meals in September.

   In the bond market, Treasury yields ticked lower after a report said 
slightly more U.S. workers filed for unemployment benefits last week than 
economists expected.

   Still, the number was lower than the prior week's, which is a signal that 
the pace of layoffs may be improving. It also followed a surprisingly strong 
report on the job market from Wednesday, which said the nation's unemployment 
rate improved last month.

   A strengthening job market could push the Federal Reserve to keep its cuts 
to interest rates on pause, even if President Donald Trump has been loudly and 
aggressively calling for lower rates. That's because lower rates can worsen 
inflation at the same time that it gives the economy a boost.

   It all raises the stakes for Friday's upcoming report on inflation at the 
U.S. consumer level. Economists expect it to show inflation eased to 2.5% last 
month from 2.7% in December.

   A separate report on Thursday said that sales of previously occupied homes 
slumped last month by more than economists expected, which also weighed on 
yields.

   The yield on the 10-year Treasury slipped to 4.14% from 4.18% late Wednesday.

   In stock markets abroad, South Korea's Kospi rushed 3.1% higher thanks to 
gains for Samsung Electronics, SK Hynix and other tech stocks. The moves were 
more modest in other Asian markets.

   In Europe, Germany's DAX returned 1.2%, and France's CAC 40 rose 1% for two 
of the world's bigger moves.

   ___

   AP Business Writers Chan Ho-him and Matt Ott contributed.

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