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Home / Business and Economy / Retail Strength Masks Tech's AI Spending Woes

Retail Strength Masks Tech's AI Spending Woes

19 Dec

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Summary

Consumer stocks are lifting the market despite Big Tech's AI spending concerns.
Inflation data was lighter than expected, aiding market gains on Thursday.
Retailers like Darden Restaurants and Target led Thursday's stock market rally.

Retail Strength Masks Tech's AI Spending Woes

Consumer-oriented companies are driving stock market gains, providing a significant boost to major indices like the S&P 500 and Nasdaq. This positive momentum comes despite increasing scrutiny on the massive artificial intelligence expenditures by major technology firms. The strength in retail is helping to mask questionable financial activities observed at the highest levels within the tech industry.

Thursday's market performance was further bolstered by lower-than-anticipated inflation figures. The consumer sector, which had faced pressure throughout the year due to economic uncertainties and eroding confidence from persistent inflation, is now showing resilience. Companies such as Darden Restaurants, Texas Roadhouse, Williams-Sonoma, Target, and Kohl's were highlighted as key contributors to the day's rally.