Thanks to stock markets ready to book profits in artificial intelligence suppliers, the Dow Jones closed at 40,000.90. The index traded at over 40,200 before a late-day sell-off last Friday.
Chances are high that the Dow will break out to new highs in the coming weeks. UnitedHealth Group (UNH) is 8.33% of the index. It continues to bounce back from a sub-$440 low in April.
In the financial sector, Goldman Sachs (GS) is in a recovery phase. The firm is undoing its disastrous foray into consumer lending when it teamed up with Apple (AAPL) to offer banking services.
In the technology sector, Microsoft (MSFT), Salesforce (CRM), Apple, and IBM (IBM) will likely not fall by much. Investors expect that AI and mega-cap tech firms will dominate the economy. Although chatbots have yet to prove their worth, firms that do not embrace this automation face higher risks.
Chatbots may potentially improve customer service and drive sales. Internally, corporations may cut jobs when AI replaces them.
Smallest Dow Components
Intel (INTC), Cisco (CSCO), Dow (DOW), and Verizon (VZ) have the weakest influence based on their lower share price. These firms may offer bargain hunters a chance to bet on their prospects rebounding.
