Despite nvidia’s big numbers, worries about an ai bubble may be over. The concern among investors is that all the dollars pouring into AI chips and data centers may not produce the huge profits and economic productivity that they promise.
Yes, Nvidia expects to sell another $US65 billion in the next three months, which is more than expected. But will all these chips create huge profits for Amazon and other companies that use them? That question – whether all the investment in Ai will be worth it in the end – is still unanswered.
The most recent survey of Global Fund Managers by Bank of America showed a record percentage of investors who say companies are “watching.”
Amazon went from an early gain of 2.1 percent on Thursday to a loss of 2.5 percent. Palantir Technologies turned to a jump of 5.5 percent against a loss of 5.8 percent.
The last time the entire stock market had changed in one day was as wild as it was in April, when President Donald Trump shocked the world with his tough “liberal” taxes.
For the second concern that has dragged the road to the wall, interest rates, Thursday’s jobs report from the US government came mixed and offered some relief. Financial markets initially seemed to be picking data to isolate encouraging signals, according to Sae Sha Shah, Skitist’s Global Chief Asset Manager.
The report showed hiring by US employers was stronger in September than the economy expected, which could suggest the economy remains strong. But he also said the unemployment rate is rising slightly, which could provide a genetic reason to cut its key interest rate at the next meeting in December.
Traders still see the December rate cut as the best, giving it about a 40 percent chance, according to data from CME Group. But that’s better than the 30 percent chance they saw the day before.
What the Fed does is important to the stock market because rates are running at record highs in part because of expectations of further rate cuts. The Fed has already cut rates twice this year to stabilize a sluggish job market. But the lower rates could increase inflation, which remains stubbornly above Od’s 2 percent.
On the winning side of the wall was Walmart, which rallied 6.5 percent after the retailer delivered another standout quarter. Strong sales and profits have been reported in the Wall Street Regence as it continues to appeal to Americans battered by the economy and prices.
Taking pictures
That was not enough to drown the losses of nvidia and tech. Companies in the crypto industry have also struggled, as bitcoin fell to its lowest price since April. Stock markets fell 10.1 percent, and Coinbase Global sank 7.4 percent.
All told, the S & P 500 fell 103.40 points to 6,538.76. The Dow Jones industrial average jumped 386.51 to 45,752.26, and the NASDAQ composite sank 486.18 to 22,078.05.
In the bond market, the yield on the 10-year Treasury rose to 4.09 percent from 4.13 percent on Wednesday.
In stock markets abroad, investors are rising across Europe and Asia.
Japan’s Nikkei 225 jumped 2.6 percent, and South Korea’s Kospi rose 1.9 percent for two of the biggest gains.
Wing
The market news paper Recrap is a wrap-up of the day’s trading. Get each one of useKdani in the afternoon.
