Morning Bid: Stocks catch a break after bruising AI selloff

Market Overview - U.S. stock and bond markets experienced a brief recovery after a turbulent period related to AI stocks, with focus shifting to upcoming economic reports [1] - The mood around the artificial intelligence sector is currently unstable, with significant declines in shares of Oracle and Broadcom, impacting Nvidia as well [2] Company Performance - Nvidia is reportedly considering increasing production capacity for its H200 AI chips due to high demand, which may positively influence its stock performance [3] - Micron is scheduled to report its earnings later in the week, which could also affect market sentiment [3] Sector Rotation - A notable sector rotation is occurring as the year ends, with the Nasdaq index dropping 1.6% while the Dow Jones Industrial Average gained 1% and reached a record high [4] Bond Market Dynamics - Long-dated Treasuries faced pressure, with the 30-year bond yield reaching three-month highs, and the yield curve steepening to its widest since September [5] - Upcoming events include a significant payrolls report and a 20-year U.S. bond auction, which are expected to influence bond market movements [6] Federal Reserve Leadership Speculation - President Trump has narrowed down candidates for the next Federal Reserve chair to Kevin Warsh and Kevin Hassett, with market perceptions of their chances fluctuating following his comments [7]