Yahoo Finance·2025-08-28 22:03Market Trends & Dynamics - S&P 500 closed above 6,500 for the first time, indicating a record day on Wall Street [2] - Laggards, including most shorted stocks, small caps, and midcaps, are starting to outperform, suggesting a shift in market leadership [3] - Industrials, communication services, tech, and utilities are leading year-to-date, driven by AI, tech, and manufacturing [11] - Reshoring theme and potential rate cuts may lead to new leadership in sectors like housing, building suppliers, and autos [12] - A subdued performance for the Magnificent 7 is expected, with outsized performance for the unmagnificent 493 [14] Nvidia & Semiconductor Industry - Nvidia's data center GPU growth decelerated sequentially from $410 million (341 billion to 338 billion), raising caution despite networking offsetting it [5] - Nvidia's revenue deceleration from a 300% growth rate to 50% in about a year is significant [6] - Nvidia's supply bottleneck is due to dependence on Taiwan Semiconductor, making Intel's Arizona 18A node crucial for increased capacity [7][8] - The growth of Nvidia's revenue is capped at approximately $4 billion per quarter due to Taiwan Semiconductor's capacity limitations [9] AI & Technology Spending - Nvidia forecasts $3-4 trillion spend in AI infrastructure until the end of the decade, including hyperscaler data centers, enterprise data centers, and edge computing [25][27] - Sovereign cloud, a localized version of AI for specific governments, is expected to grow, distributed in neoclouds [29] Footwear Market - Nike's popularity is declining, with its dominance being tested by New Balance and Adidas [31][32] - Nike's popularity was 38%, down 23 percentage points year-over-year, the lowest level since 2008 [32] - Retro runner styles led by New Balance are the hottest trend, while Hoops Classics (dominated by Nike and Jordan) are losing steam [33] - Adidas Samba is referenced in 46% of checks and sells for $100, while Nike Bomero 5 sells for $170 [39]