prepared to release earnings<\/a> tomorrow, in what many will see as a bellwether for the wider AI ecosystem. Fears are mounting that AI stocks such as Nvidia \u2013 currently valued at about $4.6 trillion \u2013 are overinflated and that an investment bubble has formed.\u00a0<\/p>\nRuss Mould, investment director at AJ Bell, said there has \u201crarely been more riding on an individual set of results\u201d than Nvidia\u2019s. \u201cEven a mild disappointment could reinforce the market\u2019s worries and spark a wider sell-off.\u201d\u00a0<\/p>\n
The chipmaker\u2019s shares were about 2.5% down in early trading Tuesday morning.<\/p>\n
The vice president of JPMorgan, Daniel Pinto, became the latest to warn on Tuesday that AI stocks could fall soon. \u201cThere is probably a correction there,\u201d Pinto said at a Bloomberg event in South Africa Tuesday. \u201cThat correction will also create a correction in the rest of the segment, the S&P and in the industry.\u201d<\/p>\n
Global stocks were also in the red Tuesday. Declines in Japan and South Korea were followed by a 1.3% fall for Britain\u2019s FTSE 100 and a 1.7% drop for France\u2019s Cac 40.\u00a0<\/p>\n
Experts also pointed to jitters before a swathe of delayed U.S. economic data releases are put out in the coming days including September\u2019s jobs numbers, which have not surfaced yet because of the recent government shutdown.\u00a0<\/p>\n
If those indicate any further inflation risk, it could weaken the case for the Fed to cut rates at its next meeting in December. Recent comments from Fed chair Jerome Powell and other policymakers have thrown further doubt on hopes that it will do so.<\/p>\n
Powell said after the last cut in October that \u201ca further reduction in the policy rate at the December meeting is not a foregone conclusion \u2014 far from it.\u201d\u00a0<\/p>\n
Boston Fed President Susan Collins said last week that it will \u201clikely be appropriate to keep policy rates at the current level for some time to balance the inflation and employment risks in this highly uncertain environment.\u201d<\/p>\n
But Fed governor Christopher Waller voiced support for a cut in December, citing concerns over the labor market. He said Monday: \u201cMy focus is on the labor market, and after months of weakening, it is unlikely that the September jobs report later this week or any other data in the next few weeks would change my view that another cut is in order.\u201d<\/p>\n
The CME FedWatch tool<\/a> was placing the probability of a December rate cut at 47% on Tuesday, down more than 10% since last week.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"U.S. stocks fell Tuesday alongside a slump in global equities, amid deepening concern that AI and tech company…\n","protected":false},"author":2,"featured_media":140019,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":{"0":"post-140018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-il","12":"tag-israel","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/140018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=140018"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/140018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/140019"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=140018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=140018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=140018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}