Technology Stocks
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We Could Still See a Year-End Rally Despite AI Stocks’ Dip.
The Nasdaq fell 0.84% due to tech sector weakness, with Apple, Meta, and Oracle declining. Nvidia dropped nearly 2% despite a large order backlog, raising caution ahead of its earnings report. Analysts are divided, with some anticipating a year-end tech rally driven by cloud and SaaS demand. Others see an AI bubble risk. Separately, wealthy investors are leasing gold bars to refiners for income, capitalizing on high gold prices to generate yields.
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AI Still Under Pressure, But Year-End Rally Possible
The Nasdaq fell 0.84% due to tech stock declines, including Apple, Meta, and Oracle. Investors are wary of tech valuations and capital expenditure, particularly for Nvidia, despite strong future order claims. Analysts are closely watching Nvidia’s upcoming earnings call. While some see potential for a year-end rally driven by rate adjustments and macro data, Bitcoin’s weakness is a concern. Other news includes India’s energy deal with the US and Fed officials’ divided views on interest rate cuts.
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Farmers Hope for End to US-China Trade War
Anticipation of a U.S.-China trade agreement spurred global market rallies, with major indices reaching record highs. Tech and agriculture sectors are poised for potential boosts. Amazon is reportedly planning significant layoffs, while Tesla’s CEO’s future hinges on shareholder approval of his compensation. Gold retains investor appeal amidst geopolitical uncertainty and as a popular investment in India during Diwali. Trump indicated a China trade deal is within reach and a resolution regarding TikTok might materialize soon.
