The Fed could pop the AI bubble in stocks, and investors shouldn’t chase the hype, Bank of America said. That’s because financial conditions are tight, a factor that’s burst Wall Street’s excitement in the past. BofA previously said AI was a “baby bubble,” which could burst if the Fed keeps hiking rates. The Federal Reserve …
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United States President Joe Biden said that reaching the debt ceiling deal in principle is an “important step forward” that reduces spending while protecting the Democrats’ “key priorities and legislative accomplishments.” He acknowledged that it is a compromise, “which means not everyone gets what they want.” “This agreement is good news for the American people, …
Rarely does a tech-powered stock rally come along that isn’t pilloried for the fragility of its foundation. Now, with a snowballing craze for artificial intelligence pretty much propping up the market by itself, the haters are out in force. Never have so few stocks shouldered so much of the load in indexes such as the …
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BofA says AI is in a ‘baby bubble’ that echoes the dot-com era, and one move could easily blow up What could burst the bubble is the Fed pausing rate hikes and then restarting the cycle. BofA said the dot-com blow-up in the early 2000s had roots in the Fed restarting policy tightening in …
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The International Monetary Fund issued on Friday its preliminary findings on the state of the United States economy following its official visit to the country, predicting annual GDP growth of 1.7% in 2023, followed by 1% next year. This slowing will likely be followed by an increase in unemployment to about 4.5% by the end …
US inflation and consumer spending accelerated last month, highlighting steady price pressures and demand that will keep Federal Reserve policy makers tilted toward raising interest rates further. The personal consumption expenditures price index and a core measure that excludes food and energy, the Fed’s preferred inflation gauges, both exceeded projections. The Commerce Department’s data also …
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(Bloomberg) — Markets are largely in the green Friday but strategists warn there’s still a prospect US debt-ceiling negotiations break down over the weekend or result in draconian spending cuts that crimp global economic growth. Assets in Asia are especially vulnerable as they will be the first to react to any agreement when they open …
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https://youtu.be/5masmTyuJpA According to commodity experts at Standard Chartered, speculative positioning in crude oil has now returned to its March bearish extreme. It’s becoming increasingly clear that Saudi Arabia is no longer interested in staying in Washington’s good books, and the OPEC+ cartel will do anything in its power to keep oil prices high. U.S. …
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Analysts were awestruck in describing Nvidia’s latest outlook, with one musing that it could have marked the ‘greatest beat of all time’ Unprecedented. Cosmological. Unfathomable. Those are just some of the ways that awestruck analysts described Nvidia Corp.’s NVDA, 27.47% latest bout of quarterly guidance. The chip maker said it expects $11 billion in revenue …
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Goldman Sachs continues to be bullish on crude oil and other major commodities, expecting a rally after the biggest-ever destocking in commodities that is currently underway. Should major economies, including the U.S., avoid deep recessions, the foundations for a rally across the commodity complex remain intact, Goldman Sachs analysts wrote in a note, although they …
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