Indices
- Dow 46,987, -575or -1.21%.
- Nasdaq 23,004,-720 or -3.04%.
- S&P 6,728,-112or -1.64%.
- MSCI EAFE 2774.12, -21.23or -0.76%.
- USD10Y 4.093%,-0.8bp or -0.20%.
- WTI Crude $59.75/bbl, -$1.23 or -2.02%.
AI Valuation Worries, Government to Reopen?
Markets stumbled last week as investors took profits amid renewed concerns over lofty valuations in the artificial intelligence (AI) sector. The selling pressure prompted a rotation into defensive areas such as Energy, Real Estate, and Consumer Staples.
Investor favorites including Nvidia (NVDA, -7.08%), Broadcom (AVGO, -5.46%), Microsoft (MSFT, -4.05%), Palantir (PLTR, -11.24%), Oracle (ORCL, -8.89%), and Meta (META, -4.11%) all saw heavy declines, while Amazon (AMZN), Alphabet (GOOGL), and Apple (AAPL) held up relatively well.
However, AI-related concerns are likely to take a back seat this week following Sunday evening’s news that the Democratic Party conceded to Republican demands, providing the votes needed to reopen the government without the Affordable Care Act (ACA) subsidies that were at the center of the dispute. As of this writing, Dow Jones futures are modestly higher, and Nasdaq futures are up more than 1%.
Looking Ahead: November 10 – 14
If Congress votes to end the shutdown as expected, it will be a major week for economic data. Key reports include the Consumer Price Index (CPI), Producer Price Index (PPI), Initial Jobless Claims, and U.S. Retail Sales—all of which will help shape the market’s inflation outlook.
After two weeks dominated by major tech earnings, this week’s corporate calendar is lighter. Notable reports include Cisco Systems (CSCO), Applied Materials (AMAT), and Walt Disney (DIS).
Economic Calendar
- Monday – N/A. Earnings: N/A.
- Tuesday – Veteran’s Day Observed (Stock markets open; bond markets closed). Earnings: N/A.
- Wednesday – N/A. Earnings: Cisco Systems (CSCO).
- Thursday – Initial Jobless Claims*, October Consumer Price Index (CPI)*. Earnings: Walt Disney (DIS), Applied Materials (AMAT).
- Friday – October U.S. Retail Sales*, October Producer Price Index (PPI)*. Earnings: N/A.
*Pending the end of the government shutdown
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Disclaimer: This is not a recommendation to buy or sell any of the securities listed above. I personally, or a family member whose account I control, have positions in the following securities/assets...Bitcoin, Ethereum, Solana, ACHR, BITB, HPE, IBIT, NVDA, and RIVN.