US stocks mostly fell as investors digested a wave of tech-focused earnings, precious metals jumped to continue their wild ride, and a partial government shutdown rolled into its fourth day. The tech-heavy Nasdaq Composite (^IXIC) sank by 0.8% after initially beginning the session in the green, while the S&P 500 (^GSPC) lost 0.4% after also starting the day up. Moving the other direction, the Dow Jones Industrial Average (^DJI) managed to avoid losses and pick up 0.1% after the blue-chip benchmark led gai ...

US stock futures rose on Tuesday as earnings rolled in, with Palantir's (PLTR) outlook fueling faith in AI demand and precious metals jumping to continue their wild ride. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved up 0.6%, while those on the S&P 500 (ES=F) edged up 0.3%. Dow Jones Industrial Average futures (YM=F) crept into the green after the blue-chip benchmark led gains on Monday with a 500-point advance. The S&P 500 (^GSPC) is eyeing a fresh record after Palantir's (PLTR) surprisingly stro ...

Core Insights - AMD reported Q4 earnings that exceeded expectations, with EPS of $1.53 and revenue of $10.3 billion, surpassing Wall Street's estimates of $1.32 EPS and $9.6 billion revenue [1] - Despite the positive earnings report, AMD's stock price declined following the announcement [1] Financial Performance - Q1 revenue guidance is projected between $9.5 billion and $10.1 billion, which is better than the Street's estimate of $9.4 billion, although some forecasts anticipated over $10 billion [2] - Data center revenue for the quarter reached $5.4 billion, exceeding expectations of $4.97 billion [3] - Client business revenue was reported at $3.1 billion, surpassing the anticipated $2.9 billion, while gaming revenue was $843 million, slightly below the expected $855 million [4] Market Context - AMD is facing challenges from a global memory shortage, which may lead to increased prices for PC makers and potential demand destruction in its PC and gaming segments [6] - The company has seen significant stock price increases over the past year, with AMD up 112% and Nvidia up 54% [3] Product Developments - AMD showcased new products at CES 2026, including the Helios rack-scale server, which is positioned as a competitor to Nvidia's offerings [7] - The upcoming MI500 series of GPUs is claimed to provide up to a 1,000x increase in AI performance compared to the older MI300X chips, indicating a strong focus on the AI data center market [8] - CEO Lisa Su anticipates the AI data center market could be worth around $1 trillion by 2030, highlighting the strategic importance of these developments for AMD [8]

Core Insights - The excitement surrounding hyperscalers is beginning to face reality, with concerns about the sustainability of their business models and the economic assumptions behind them [2][6][9] Company Analysis - Oracle's recent announcement indicates a need for increased capital expenditure to support cloud services, but this is heavily reliant on the demand for generative AI and the availability of expensive, energy-intensive chips from companies like Nvidia and AMD [2][6] - Projections for combined revenue from OpenAI and Claude are around $30 billion, which is considered minuscule compared to the expectations for the industry [2][9] - There are doubts about the reliability and quality of AI products, as demonstrated by subpar outputs from various AI platforms when tasked with complex financial modeling [4][5][8] Industry Trends - The current economic transformation in the AI industry is characterized by small initial revenue figures that are expected to grow significantly over time, but the high levels of debt being incurred raise concerns about future demand [3][9] - Political resistance is emerging against the construction of data centers, with local officials hesitant to approve permits that would lead to increased utility costs for voters [6][10] - Many investments in advanced technology are perceived as short-term valuation plays rather than genuine long-term strategies, potentially misleading investors about the true needs of the industry [9][10]

Core Viewpoint - The stock market is currently experiencing signs of an AI bubble, despite the long-term bullish outlook on artificial intelligence. Group 1: Market Performance - The Invesco QQQ Trust, tracking the Nasdaq-100 index, has achieved a total return of 117% over the past three years, largely driven by the "Magnificent Seven" stocks and AI ventures [2]. Group 2: Warning Signs of an AI Bubble - **Enormous Capital Outlays**: Major data center operators, including Amazon, Microsoft, and Alphabet, collectively spent hundreds of billions on AI-related capital expenditures last year, indicating a surge in investment activity [4]. - **Funding Challenges for OpenAI**: OpenAI plans to spend $1.4 trillion on computing resources over the next eight years, raising questions about funding sources despite reaching $20 billion in annualized revenue last year [5]. - **Financial Engineering**: Companies with strong net income are still raising capital through financial engineering, such as a $27 billion joint venture between Meta Platforms and Blue Owl Capital, which keeps debt off Meta's balance sheet [6]. - **Interconnectedness of AI Sector**: The interconnected nature of AI companies means that struggles within one entity could lead to broader issues across the sector [7]. Group 3: Long-Term Return Uncertainty - Despite rapid adoption of AI tools, with OpenAI's ChatGPT reaching 800 million weekly users and Alphabet's Gemini app having 650 million monthly active users, only 3% of AI users pay for premium access, raising doubts about the adequacy of returns on AI investments [8]. - There is a possibility that AI may only provide incremental benefits to the economy, potentially disappointing those who expect transformative changes akin to past innovations like PCs and mobile devices [9].

Despite the skyrocketing valuations of the Magnificent Seven and anxiety over massive AI capital expenditures, one top economist argues that the U.S. stock market is missing the most critical ingredient of a financial mania: the exit of the “smart money.”Owen Lamont, a portfolio manager at Acadian Asset Management and a former University of Chicago finance professor, said that while the market looks and feels frothy, we are not currently in an AI bubble. As he talked to Fortune from his office in Boston, th ...

Bitcoin Falls as Microsoft Leads Tech Selloff After EarningsCONCLUDED[Stock Market News From Jan. 30, 2026: Dow Falls After Trump Picks Warsh to Head the Fed]Last Updated:---15 hours ago# Bitcoin Falls as Microsoft Leads Tech Selloff After EarningsByRenae Dyer, Dow Jones NewswiresBitcoin remained under pressure after hitting a two-month low overnight as disappointing earnings from Microsoft fueled a wider selloff in tech stocks."We are not in the AI bubble camp, but we do believe that the market will questi ...

Core Insights - Spending on AI infrastructure is projected to reach between $3 trillion and $4 trillion by the end of the decade, indicating significant investment in this sector [2] - The S&P 500 achieved a total return of 18% in 2025, marking its third consecutive year of double-digit gains, largely driven by the AI boom [1] Investment Sentiment - There are concerns about a potential AI bubble in 2026, fueled by the substantial capital being allocated to AI infrastructure without corresponding returns on invested capital [2][3] - Only 3% of users currently pay for AI services, suggesting that the market may not yet be fully monetized [3] - High valuations, such as Palantir Technologies trading at a price-to-sales ratio of 110, reflect the hype surrounding AI [4] Long-term Investment Strategy - Despite fears of an AI bubble, it is recommended that investors consider long-term investments, particularly in the Vanguard S&P 500 ETF, which has a low expense ratio of 0.03% [5] - Historical data indicates that the S&P 500 generally produces positive annualized returns over long periods, making it less concerning to buy at all-time highs [7] - Investors are advised to avoid market timing and continue investing consistently, as the Vanguard S&P 500 ETF remains a strong option [8]

Ethereum giant BitMine Immersion Technologies and top Bitcoin treasury Strategy and have seen their stocks slide amid a fresh round of investor worry, with both of their respective assets of choice both falling hard Thursday. Upon the close of markets on Thursday, BitMine, which trades under the BMNR ticker on the Nasdaq, had shed nearly 10% and was changing hands for $26.70. BMNR dipped as low as $26.02 on the day, matching its $26.02 close on November 2, 2025. At the start of the week, Tom Lee's BitMin ...

Market Overview - Global markets experienced significant volatility due to fears of a U.S. strike on Iran and the threat of another government shutdown, impacting oil and metals prices while tech stocks suffered, leading to declines in the Nasdaq and S&P 500 [1][3] Key Market Moves - Wall Street saw a decline, with the Nasdaq down by 0.7%, and notable losses in Germany's DAX at 2%. U.S. tech stocks fell by 2%, while communications software gained 3%. Major companies like SAP and Microsoft saw declines of 15% and 10% respectively, whereas Apple rose by 4% in after-hours trading following its Q4 results [3][4] Oil and Commodities - Oil prices surged, with Brent crude surpassing $70 per barrel for the first time since July, driven by geopolitical tensions, particularly U.S.-Iran relations. WTI crude reached its highest level since September [4][5] - The volatility in commodity markets was marked by sharp price swings, with gold, silver, and copper hitting new highs before closing lower. This reflects a speculative excess in the precious metals sector [5][6] Economic Indicators - The U.S. trade deficit widened significantly, marking the largest increase in nearly 34 years as of November [3] - Year-on-year oil price changes have shifted from -25% at the start of the year to -5%, indicating a potential concern for policymakers as high energy prices could impact the affordability crisis ahead of the U.S. midterm elections [5]