Stocks sliding for fourth session with AI weighing on investors amid cautionary headlines from Google CEO, JP Morgan warnings, and Amazon/Microsoft downgrades
Sam
Nathan Peterson
Sentiment around AI has shifted from speculative excess to concerns about valuation, overinvestment, and leverage - Wall Street now punishing heavy CapEx spending
Nathan Peterson
Key technical damage occurred yesterday with S&P 500, Dow, Nasdaq Composite closing below 50-day SMA for first time since April, and Russell 2000 below 100-day SMA
Nathan Peterson
Market needs capitulation flush to reset expectations and sentiment before healthy technical movement can resume
Rotation into value/defensive plays continuing with healthcare, real estate, consumer staples up while asking if this continues through event risks
Sam
Nathan Peterson
Rotation into defensive/value will continue as long as AI sentiment remains sour - market seeking relative safety with sub-market multiples
Nathan Peterson
Russell would be good play if yields were falling substantially but that hasn't happened - focus remains on jobs data and Fed questions
Asking about Nvidia metrics that could determine further downside or market recovery
Sam
Nathan Peterson
Key Nvidia metrics: demand statement deviation from 'sold out' narrative, margin guidance degradation, and degree of forward guidance beat above expectations