Wall Street Recovers Some Losses       06/11 10:06

   The U.S. stock market is recovering some of its losses for the week on 
Thursday, as the roller coaster for artificial-intelligence companies turns 
back upward. 

   NEW YORK (AP) -- The U.S. stock market is recovering some of its losses for 
the week on Thursday, as the roller coaster for artificial-intelligence 
companies turns back upward. Oil prices and Treasury yields, meanwhile, remain 
near where they were the day before, even though worries are rising about the 
war with Iran and accelerating inflation.

   The S&P 500 added 0.5%, coming off a back-to-back drop that yanked it back 
to where it was in early May. The Dow Jones Industrial Average was up 326 
points, or 0.7%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 
0.7% higher.

   AI stocks helped lead the market, as they have since last week then they 
went from roaring to records to suddenly turning lower. The big concern is 
whether such stocks shot too high, too fast because of AI mania, and they've 
been careening up and down, sometimes hour by hour.

   Marvell Technology climbed 5.5%, for example. It's coming off a manic 
stretch where it plunged 16.7%, soared 9.6% and then fell more than 5% for two 
straight days. Just before that, it had a one-day surge of 32.5% that was its 
best in history when Nvidia CEO Jensen Huang suggested it could be "the next 
trillion-dollar company." It was worth a bit more than $190 billion at the time.

   Companies in the chipmaking industry jumped to some of the market's biggest 
gains. Intel rose 7.8%, and Applied Materials climbed 7.5%.

   That helped offset a drop of 11.1% for Oracle. It reported a stronger profit 
for the latest quarter than analysts expected, but it also said it expects to 
raise $40 billion in cash this fiscal year through borrowing and sales of its 
stock. That comes after it raised $48 billion last fiscal year to help pay for 
AI investments.

   Other companies' stocks have also been punished recently for announcing 
heavy spending on AI, as the question remains whether all the investment can 
produce the kinds of profits and productivity that AI proponents are promising.

   Oil prices, meanwhile, drifted following the latest fighting in the war with 
Iran, which has hurt the flow of oil deliveries from the Persian Gulf. 
President Donald Trump threatened to launch major strikes on Iran and seize 
control of its oil and gas industries.

   The United States and Iran have launched attacks over the past several days 
after a more than monthlong tenuous ceasefire. While the strikes have escalated 
tensions in the region, they have been more limited compared to the early weeks 
of the war and talks aimed at extending the ceasefire are ongoing.

   Brent crude oil, the international standard, fell 0.5% to $92.64 per barrel. 
U.S. benchmark crude oil added 0.3% to $90.29 per barrel.

   High oil prices have sent inflation painfully upward, and a report on 
Thursday showed that prices at the U.S. wholesale level increased by more in 
May than economists expected. The effect is worldwide, and the European Central 
Bank on Thursday became the first major central bank to raise interest rates in 
response.

   Higher rates can keep a lid on inflation. But they also simultaneously slow 
entire economies and undercut prices for all kinds of investments, including 
stocks and cryptocurrencies. They hit investments seen as the most expensive in 
particular, and some critics are calling AI a bubble where investment inflated 
too far.

   The Federal Reserve will make its own decision on interest rates next week 
under its new chair, Kevin Warsh. He was appointed by Trump, who has been 
pushing for lower interest rates. But the widespread expectation is that the 
Fed will keep its main interest rate steady next week.

   If anything, traders see the Fed as more likely to raise rates at least once 
by the end of the year, according to data from CME Group.

   The yield on the 10-year Treasury eased to 4.52% from 4.55% late Wednesday.

   In stock markets abroad, indexes rose modestly in Europe following a mixed 
finish in Asia.

   London's FTSE 100 rose 0.9%, and Hong Kong's Hang Seng fell 0.7% for two of 
the world's bigger moves.