Cathie Wood: AI destroys old system and replaces Google, chip stock crashes – day on Wall Street
Price gains given up during trading: US stock markets closed the week rather subdued. The Dow Jones fell 0.3 percent on Friday, closing at 41,249 points. The S&P 500 lost 0.1 percent to 5,659 points. The Nasdaq Composite was virtually unchanged at 17,929 points, as was the Nasdaq 100.
The focus was clearly on the upcoming weekend of trade talks: Representatives of the US government, led by Treasury Secretary Scott Bessent, are meeting with their Chinese counterparts in Switzerland. These are the first high-level trade talks since the launch of Trump's tariff offensive in early April, during which the US announced blanket "reciprocal" tariffs on imports from around the world.
Trump himself once again stoked expectations – and uncertainties – in advance. On Truth Social, the US president wrote: "An 80 percent tariff on China seems right." This would be a reduction from the current 145 percent, but still significantly higher than the negotiated target of less than 60 percent reported by media outlets like Bloomberg. It remains unclear whether this is intended as a temporary negotiated tariff or a new long-term value.
Trump advises buying stocksTrump announced further deals: "Many trade deals in the works, all good (GREAT!) deals!" the president said online. Yesterday, Trump had already advised people to buy stocks now. The US would "take off like a rocket."
On a weekly basis, all three major US indices lost slightly: the S&P 500 fell around 0.5 percent, the Nasdaq lost 0.3 percent, and the Dow lost just under 0.2 percent.
Wood with AI announcementMeanwhile, star investor and ARK CEO Cathie Wood said in an interview with CNBC : "Artificial intelligence will disrupt the traditional world order." According to Wood, traditional Googling is on the verge of extinction. The future no longer belongs to the search field, but to AI-powered personal assistants that proactively deliver information. "The assistants will do most of the legwork for us," Wood said. That Large Language Models (LLMs) like GPT are already taking market share away from Google is no longer a surprise to her—after all, an Apple executive recently admitted that search engines could be replaced in the future.
However, Alphabet is working on AI solutions itself and has stated that the growth in search queries continues, as DER AKTIONÄR noted here yesterday.
Chip stock Wolfspeed fell 25 percent today following its earnings release. While the results were in line with expectations, the company is facing a major restructuring process. JPMorgan downgraded the semiconductor manufacturer to "sell."
Read the following articles to find out what else was happening with individual stocks on the US market.
Note on conflicts of interest The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which could benefit from any price development resulting from the publication: Wolfspeed.
The author holds direct positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price developments resulting from the publication: Alphabet (A).
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