The market had a truly widespread selloff Friday \u2014 one of the few over the past several quarters \u2014 as\u00a0 the Nasdaq fell by over 4% on the day. That was the biggest one-day decline since the markets\u2019 tariff tantrum at the beginning of April of last year.\u00a0It was a true \u201crisk off\u201d day as small caps were off 3.5%.\u00a0 Bitcoin briefly went under the $60,000 threshold on Friday before rebounding sharply.\u00a0 The cryptocurrency is down more than half since its record highs in October.\u00a0 A testament on how fast things can go sideways once a bubble pops.\u00a0<\/p>\n
Friday\u2019s jobs report contained both good news and bad news.\u00a0Job creation last month was double the consensus and March and April had their job estimates revised upward.\u00a0Job openings also surged in April.\u00a0 But a lot of job growth came from the low-paying hospitality industry.\u00a0Most of the rest came from local government and health care, not exactly the most productive parts of the economy.\u00a0<\/p>\n
Yield on the 10-year treasury moved back over the 4.5% level.\u00a0 Any hopes for a rate reduction in 2026 now seem like a pipe dream. \u00a0Mortgage rates are significantly higher than they were earlier in the year which has put the kibosh on any chances of a solid spring selling season for the moribund housing market. \u00a0Wages rose 3.4% over the past 12 months.\u00a0 But that is less than the current rate of inflation, which has moved higher thanks to the conflict with Iran.<\/p>\n
Speaking of which, there was no clear progress in negotiations last week on an agreement to reopen the Strait of Hormuz.\u00a0 One could make an argument that things went south over the weekend.\u00a0 Polymarket now sees just over 20% chance that a permanent peace agreement happens before the end of June.\u00a0That could prove very problematic for the global economy and markets. Executives at Exxon Mobil (XOM<\/a>) and leaders at other energy firms recently projected that if that scenario plays out, we could be looking at oil at $150\/barrel as inventories and reserves get depleted.\u00a0 Equities are obviously not pricing another spike in energy prices.<\/p>\n This week will be dominated by news around the biggest IPO in history, Space Exploration Technologies Corp (SPCX<\/a>).\u00a0 Elon Musk will try to become the globe\u2019s first trillionaire as the company tries to raise $75 billion at a $1.8 billion valuation, or roughly 90 times last year\u2019s revenues.\u00a0<\/p>\n It is critical that this IPO succeeds.\u00a0 If it flops, the chances of OpenAI and Anthropic coming public in 2026 decrease notably.\u00a0 This would greatly undermine the AI narrative that has driven most of the market gains since ChatGPT debuted in November 2022.\u00a0 On that topic, Microsoft (MSFT<\/a>) just joined OpenAI and Anthropic in moving their AI model customers from subscription-based pricing to usage-based pricing.\u00a0This is a story that has gotten too little coverage from the financial press.\u00a0 The change could help understand what the \u201ctrue\u201d corporate demand for AI really is.\u00a0 I fear the markets might like that answer.<\/p>\n Given this view of the overall market, I would not be surprised if we see more days like Friday in the months ahead.\u00a0 I continue to hold a good chunk of dry powder within my portfolio to deploy incrementally into the market on days like Friday via covered call orders.\u00a0 I highlighted<\/a> the trade I made on Friday\u2019s selloff over the weekend.\u00a0 Wednesday, I will profile a few more growth at a reasonable price plays I have on my shopping list to act upon any further dips in equities.<\/p>\n At the time of publication, Jensen had no position in any security mentioned. <\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"The market had a truly widespread selloff Friday \u2014 one of the few over the past several quarters…\n","protected":false},"author":2,"featured_media":483779,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-483778","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/483778","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=483778"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/483778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/483779"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=483778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=483778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=483778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}