Core Viewpoint - The rise of artificial intelligence (AI) has significantly influenced stock market gains over the past two years, but concerns are growing about potential corrections in AI valuations and their broader market implications [1]. Group 1: Impact on AI Stocks - A correction in AI stocks could lead to a rapid decline in major companies like Nvidia, AMD, Microsoft, Alphabet, and Meta, which constitute a large percentage of the S&P 500 [3]. - The movements of these large AI players could shape the entire market, potentially resulting in a market environment reminiscent of the dot-com bubble burst in the early 2000s [4]. Group 2: Broader Market Implications - If the AI market trend reverses, a broad correction of 10% to 20% in the entire stock market index could occur as investor sentiment shifts and questions arise regarding AI revenue projections [5]. - Not all sectors would be equally affected; during sector slowdowns, investors may rotate funds into more stable areas like utilities, healthcare, and consumer staples, making companies with steady earnings more attractive [6]. Group 3: Effects on Startups - An AI market correction could lead to a rapid decline in valuations of AI startups, which have been heavily funded under the assumption of accelerating adoption [7]. - A market downturn could result in reduced hiring, increased consolidation, and a higher likelihood of failure for many AI startups [7].

Market Overview - Investors are selling off tech and AI-linked stocks, leading to a significant sector selloff reminiscent of previous declines in October and November, raising concerns about an AI bubble [1] - The Nasdaq 100 fell by 1.3%, while the iShares Semiconductor ETF dropped nearly 3%, marking its fourth consecutive session of losses [1] - Chipmakers have experienced a 9% decline over the past four days, the worst performance since the tariff-driven selloff in April [1] Company Performance - Nvidia Corp. saw a decline of over 4%, marking its steepest drop in two months and reaching its lowest level since mid-September [2] - GE Vernova Inc. and Constellation Energy Inc. both fell over 7%, reflecting investor concerns about power and AI-adjacent companies [2] - CoreWeave Inc. shares fell more than 6% for the sixth consecutive session, reaching their lowest level since mid-May due to concerns over overloaded order backlogs [3] - Oracle Corp. declined by 5%, with its stock down nearly 50% from October's all-time highs [3] - Alphabet Inc., a top performer among the Magnificent Seven, dropped more than 2.3%, heading for a fifth consecutive session of losses [4] Commodity and Index Performance - Silver prices surged over 4% to $66.50 an ounce, achieving a year-to-date gain of 130% [4] - Gold rose by 0.7% to $4,330, nearing its October record high of $4,350 [4] - Oil prices attempted a rebound, climbing 1% to $56 after hitting their lowest levels in nearly five years [5] - Bitcoin experienced a decline of 1.2%, indicating fragile risk appetite in crypto markets [5] Major Indices and ETFs - The Dow Jones decreased by 0.1% to 48,070.64, while the Russell 2000 fell by 0.6% to 2,504.00 [6] - The S&P 500 dropped by 0.7% to 6,755.42, and the Nasdaq 100 fell by 1.3% to 24,817.33 [6] - The Vanguard S&P 500 ETF slipped 0.8% to $619.34, and the Invesco QQQ Trust Series dropped 1.3% to $603.49 [7]

One of the hottest corners of the US stock market, chipmakers, meets the definition of a bubble as measured by professors at Harvard Business School https://t.co/PdhTndyrR8 ...

Market Overview - Major U.S. index futures indicate a mixed opening, with Nasdaq 100 futures down by 0.5% and Dow futures up by 0.2% [1] - The Dow continues to benefit from a shift toward cyclical stocks, reaching a new record closing high [3] - Overall trading activity may be subdued due to a lack of major U.S. economic data [3] Company Performance - Broadcom (AVGO) shares are under pressure, down by 5.4% in pre-market trading despite better-than-expected fiscal fourth quarter results and positive guidance [2] - Other chipmakers like Advanced Micro Devices (AMD) and Micron Technology (MU) are also experiencing pre-market weakness, indicating a potential rotation out of tech stocks [2] - Oracle (ORCL) shares plunged by 10.8% after reporting fiscal second quarter earnings that exceeded analyst estimates but had weaker-than-expected revenues [5][6] Stock Index Movements - The Dow jumped 646.26 points or 1.3% to a new record closing high of 48,704.01, partly driven by a 6.1% increase in Visa (V) shares after an upgrade from Bank of America [4][5] - The S&P 500 rose 14.32 points or 0.2% to 6,901.00, while the Nasdaq closed down 60.30 points or 0.3% at 23,593.86 [4] Economic Indicators - Initial jobless claims in the U.S. rose to 236,000, an increase of 44,000 from the previous week's revised level of 192,000, exceeding economists' expectations [7] - Gold stocks surged by 4.3%, reaching a new record closing high, alongside a significant increase in gold prices [7][9] International Market Reactions - Asian stocks rallied following a less hawkish outlook from the U.S. Federal Reserve, with the Nikkei 225 Index jumping 1.4% [10][12] - Chinese shares rose, with the Shanghai Composite Index up 0.4% after pledges for a proactive fiscal policy [11] - European stocks moved higher, driven by optimism regarding potential interest rate cuts from the U.S. Federal Reserve [16]

Market Performance - The Dow Jones Industrial Average reached a record high of 48,685, gaining 1.3% on Thursday, following a 1.1% increase the previous day, marking the best two-day rally since May [1] - Small caps continued to rise, with the Russell 2000 up 1% at 2,590, while the Nasdaq 100 fell 0.6% due to declines in chipmakers [2] - Major US indices showed varied performance, with the Nasdaq 100 at 25,595.45 (-0.7%), S&P 500 at 6,884.86 (0.0%), Dow Jones at 48,653.82 (+1.2%), and Russell 2000 at 2,585.75 (+1.0%) [7] Sector Performance - Technology sector was the only S&P 500 sector trading in the red, with notable declines in shares of Nvidia Corp. (-2.5%), Broadcom Inc. (-2.3%), and Intel Corp. (-3%) [3] - The Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.1%, while the Materials Select Sector SPDR Fund (NYSE:XLB) outperformed, up 2.0% [8] Company-Specific News - Oracle Corp. shares dropped 12% after disappointing earnings and guidance [2] - Vail Resorts, Inc. saw an increase of 8.60%, while The Mosaic Company and Rocket Lab USA, Inc. also posted gains of 8.13% and 7.73% respectively [9] - In contrast, Oracle Corporation experienced a significant decline of 13.28%, alongside other companies like Robinhood Markets, Inc. (-7.87%) and Medical Properties Trust Inc. (-6.62%) [9] Economic Indicators - Initial jobless claims rose to 236,000, indicating early signs of cooling in labor-market conditions, surpassing the consensus of 220,000 [4] - Despite the jobless claims data, traders expect the Federal Reserve to maintain interest rates at its late-January meeting, with an 82% probability of no change [4] Commodity and Crypto Markets - The dollar fell to a two-month low, while gold rose 1.1% to $4,280 an ounce, copper increased nearly 2%, and silver surged 3.7% to a record $64, marking a 121% year-to-date increase [5] - Crypto markets faced pressure, with Bitcoin dropping 2.5% below $90,000 and Ethereum, Solana, and Cardano also experiencing declines [6]

In the race to dominate artificial intelligence, China is neck and neck with America in software. But on hardware, a gap remains. America’s chipmakers, led by Nvidia, are far ahead https://t.co/ormIpGxkyv ...

Core Viewpoint - The AI capital expenditure (capex) is experiencing significant growth, presenting substantial investment opportunities, particularly in companies that provide the infrastructure for AI rather than the hyperscalers themselves [1][4]. Group 1: AI Capex Growth - AI capex spending is accelerating, indicating that the infrastructure build-out for AI has not yet peaked [1]. - The hyperscalers are engaged in a "winner-takes-all" competition, leading to unprecedented capital expenditures on infrastructure [3]. Group 2: Investment Strategy - The "picks and shovels" investment strategy focuses on companies that supply the necessary infrastructure for AI, rather than investing directly in the hyperscalers [2][4]. - Companies involved in the AI infrastructure are expected to benefit from a sustained flow of cash due to the hyperscalers' spending [3]. Group 3: Beneficiary Sectors - Chipmakers, such as NVIDIA and Broadcom, are key beneficiaries by providing AI processing power [6]. - Energy producers, including NextEra Energy and Constellation Energy, are essential for powering AI data centers [6]. - Commodities and materials suppliers, particularly those providing copper and wiring, are critical for connecting data centers [6]. - Infrastructure builders, like Vertiv Holdings and EMCOR Group, are vital for constructing data centers and cooling systems [6].

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: Stocks were mixed Wednesday as Wall Street hoped for an end to the government's record-breaking shutdown. The House is set for a final vote in the evening on the Senate-backed bill that could reopen the federal government. The Dow hit an all-time high earlier in the session. The S & P 500 and Nasdaq were under some pressure as te ...

Market Performance - The Nasdaq Composite index fell 0.21% to 23,004.54, marking a total weekly decline of approximately 3% [2][4] - Despite the recent pullback, the Nasdaq has increased over 50% since April, driven by AI optimism following the announcement of tariffs by US President Donald Trump [2][4] - The S&P 500 rose 0.13% to 6,728.81, and the Dow Jones Industrial Average gained 0.16% to 46,987.10, both rebounding late in the session due to reports of progress in ending the federal government shutdown [4] Sector Analysis - Chipmakers and technology shares led the declines in the market, reflecting a cooling sentiment after comments from Nvidia CEO Jensen Huang regarding China's potential to surpass the US in the AI race [2][4] - Michael O'Rourke, chief market strategist at JonesTrading, noted that the sector's weakness indicates a "recalibration of multiples" and profit-taking by investors after a strong performance [2][4] Global Economic Indicators - The global equities index MSCI slipped 0.07%, and the STOXX 600 in Europe decreased by 0.55%, influenced by weak trade data from China [3][4] - Chinese exports fell by 1.1% in October, the largest decline since February, highlighting the impact of tariffs and affecting investor confidence across Asia [3][4] Bond Market and Currency - US Treasury yields decreased slightly, with the 10-year Treasury yield easing to 4.091% amid worsening consumer sentiment reflected in the University of Michigan's preliminary index for November, which dropped to 50.3, the lowest since June 2022 [3][5] - The US dollar weakened against major currencies, with the dollar index falling 0.11% to 99.57, while the euro strengthened to $1.1563 and the yen weakened to 153.45 per dollar [5] Commodity Prices - Oil prices rebounded, with US crude settling 32 cents higher at $59.75 per barrel and Brent rising 25 cents to $63.63, driven by optimism following a meeting between Trump and Hungary's Prime Minister [5] - Gold prices also increased as investors sought safety amid ongoing uncertainty in the market [5]

Market Overview - U.S. equity markets faced a broad retreat on November 7, 2025, primarily due to a sell-off in technology stocks, driven by concerns over inflated valuations in the AI sector and a prolonged government shutdown [1][10] - All three major indexes are on track for their steepest weekly losses in months, with the Nasdaq Composite poised for its worst weekly performance since March [1][2] Major Index Performance - The Nasdaq Composite (IXIC) declined approximately 1.5% to 2% in afternoon trading, following a 1.9% drop on Thursday [2] - The S&P 500 (SPX) fell between 0.9% and 1.2% by mid-afternoon, after a 1.1% decline on Thursday [2] - The Dow Jones Industrial Average (DJI) was down around 0.5% to 0.8% in afternoon trading, closing 0.8% lower on Thursday [2] Volatility and Investor Sentiment - The CBOE Volatility Index (VIX) surged by 8.3%, reaching its highest level in over two weeks, indicating increased investor nervousness [3] - The current market unease is exacerbated by the ongoing government shutdown, which has led to a "data blackout" affecting crucial economic releases [6] Sector Performance - There is a notable rotation out of high-growth technology stocks, with the Technology Select Sector SPDR Fund (XLK) and Consumer Discretionary Select Sector SPDR Fund (XLY) slipping 2% and 2.3% respectively [4] - The Energy Select Sector SPDR Fund (XLE) advanced by 1%, indicating a defensive shift in investor portfolios towards traditional and value-oriented sectors [5] Corporate Developments - Tesla (TSLA) shares fell 3.3% to 4% despite shareholder approval of CEO Elon Musk's $1 trillion compensation package [13] - Chipmakers like Nvidia (NVDA) and Broadcom (AVGO) faced significant pressure, with declines of 3.8% and 4.6% respectively, reflecting caution regarding high valuations in AI-related stocks [13] - Payments company Block (SQ) slumped 9.8% to 10.5% after disappointing third-quarter earnings [13] - Conversely, Peloton (PTON) and Expedia Group (EXPE) saw significant gains of 3.4% to 6.1% and 16.6% to 17.3% respectively, following better-than-expected earnings [13]