Stock Market Update

[BRIEFING.COM] The major averages have climbed to their best levels of the session, with the Nasdaq Composite (+0.3%) moving into positive territory and the S&P 500 (-0.1%) approaching its flat line. The DJIA (-1.0%) continues to lag, while a rebound in AI-related stocks is helping the broader market recover from its early losses. The PHLX Semiconductor Index (+1.4%) is posting a modest recovery following yesterday's steep selloff.

However, earnings reactions among AI infrastructure companies remain mixed. Bloom Energy (BE 193.64, -24.13, -11.08%) is facing selling pressure despite reporting strong revenue growth and raising its FY26 earnings and revenue guidance. Investors appear more concerned about the company's negative free cash flow and substantial expansion costs, reflecting continued scrutiny of the financial demands associated with the AI buildout.

Western Digital (WDC 353.67, -0.52, -0.15%) is also trading lower despite better-than-expected earnings and upbeat guidance, supported by improving pricing and strong demand for high-capacity storage. Concerns about rising capital spending and the sustainability of AI-related growth remain important considerations for the group.