A.I. rally snaps 7-day winning streak for S&P 500

Market Overview - The S&P 500 has ended a 7-day winning streak due to concerns about the sustainability of the AI-driven rally, while gold prices have surged past $4,000 per ounce [2] - The US government shutdown is now in its second week, with President Trump indicating he may not provide back pay to some federal workers [2][49] Gold Market Insights - The recent surge in gold prices is attributed to momentum and ETF money flows rather than any significant market changes or geopolitical events [5][11] - Analysts have revised their gold price forecasts, with Goldman Sachs raising its target to $4,900 per ounce, reflecting the rapid price escalation [8] - The involvement of retail investors in gold ETFs is a key driver of the current gold price surge, indicating a fear of missing out (FOMO) among investors [11] Economic and Market Conditions - US markets experienced a downturn, with major indices, including the NASDAQ, declining by approximately 0.7% [12] - Asian markets showed mixed results, with the Hang Seng down about 0.7% and the NIK 225 down about 0.3% [14] - European markets also faced declines, with the Stoxx 600 losing about 17 basis points, marking the second consecutive negative session [14] Bond Market Dynamics - US Treasury yields are lower across the board, with former Dallas Fed president Robert Kaplan suggesting that gold's rapid rally serves as a warning signal [16][17] - The bond market is experiencing volatility, with discussions around the potential for further rate cuts and the implications for fixed income investments [21][26] Corporate Developments - BMW has lowered its sales forecast for the year due to US tariffs and weak demand from China, indicating challenges in the automotive sector [2] - Tesla shares have declined following a lackluster response to a new model release, reflecting investor concerns in the auto sector [57] IPO Activity - Security company Very Shore is set to go public on the NASDAQ, raising over €3 billion, marking a significant IPO in Europe [58] - The CEO of Very Shore highlighted a strong track record of double-digit recurring revenue growth, which has attracted investor interest [59]