AI · systemwww.channelnewsasia.com · 1 sourceImpact 3mixed
Nasdaq drops 5.5% as chip selloff spreads; rate-hike bets retreat
U.S. stocks reversed their post-election rally on November 5: the Nasdaq fell 5.5% and the S&P 500 lost 4.4%, Reuters columnist Jamie McGeever reports. Chip stocks dropped 12%, their second-biggest fall on record, as investors reassessed risks to the AI data-center buildout. Rates markets no longer fully priced another Fed increase until March. The split across assets matters: Bitcoin fell 6% to $75,000, while gold gained 1% and oil ended 3-4% higher. These are the report’s session observations.
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U.S. stocks reversed their post-election rally on November 5: the Nasdaq fell 5.5% and the S&P 500 lost 4.4%, Reuters columnist Jamie McGeever reports. Chip stocks dropped 12%, their second-biggest fall on record, as investors reassessed risks to the AI data-center buildout. Rates markets no longer fully priced another Fed increase until March. The split across assets matters: Bitcoin fell 6% to $75,000, while gold gained 1% and oil ended 3-4% higher. These are the report’s session observations.
Thesis: McGeever links the tech selloff to investor fears about constraints on the AI data-center buildout after the midterms.
Counter view: Limitation: investor fears do not establish that restrictions will be enacted, and the report leaves the market's turning point unresolved.
AI · systemInvestingLive / ForexLive · 1 sourceImpact 3mixed
Dollar stays weak as U.S. equity futures reverse election losses
U.S. equity futures recovered their early losses during European trading, while the dollar remained under pressure, InvestingLive reports after Democrats won both chambers of Congress. Its session snapshot put S&P 500 futures up 1.0% and Nasdaq futures up 0.4%, after an earlier Nasdaq decline of over 2%. Gold gained around 3%. Justin Low says the next test is whether Wall Street sustains the recovery, with AI concerns and the direction of U.S.–Iran policy still unresolved.
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U.S. equity futures recovered their early losses during European trading, while the dollar remained under pressure, InvestingLive reports after Democrats won both chambers of Congress. Its session snapshot put S&P 500 futures up 1.0% and Nasdaq futures up 0.4%, after an earlier Nasdaq decline of over 2%. Gold gained around 3%. Justin Low says the next test is whether Wall Street sustains the recovery, with AI concerns and the direction of U.S.–Iran policy still unresolved.
Thesis: Justin Low says the next test is whether Wall Street can sustain the equity recovery.
Counter view: Limitation: AI concerns, inflation risks and the direction of U.S.–Iran policy remain unresolved.