Three ways the AI boom may fizzle – and what happens to stocks next
By Jamie Chisholm
A pullback in big tech capex may rattle markets
The AI trade has powered stocks to record highs.
Stocks are seeing a little wobble. Early futures action on Monday showed the S&P 500 may struggle to recover much of Friday’s 1.2% drop.
But that still leaves Wall Street’s main equity barometer just a fraction below this month’s fresh record high.
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Read MoreThe Fed Has a New Boss, Inflation Is at a 3-Year High, and Rate Cuts Look Unlikely. These Stocks Win in That Environment.
How quickly the investing environment can change.
Just a few months ago, markets were expecting the Federal Reserve to cut its benchmark interest rate two or even three times by the end of 2026.
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Will AI create the world’s first trillionaire? |
Dominion Energy stock surges on a deal with NextEra to make the world's biggest utility
The move: Dominion Energy stock opened Monday’s trading session up double digits. The stock was up as much as 15.75% in premarket trading before paring the gain to about 12% after the opening bell.
Monday’s moves put the stock up 17% year to date.
Read MorePrediction: This Will Be Palantir's Stock Price by 2030
Palantir (PLTR +0.02%) has been one of the best-performing stocks of the AI investing era. If you had the foresight to invest $10,000 in Palantir at the start of 2023 and hold on, your stake would now be worth more than $200,000. However, Palantir’s stock has shown a lot of weakness lately and is down more than 30% from the all-time high it set in October.
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Read MoreCould Trump Accounts be a model for Social Security? Here's what experts say
Ryanjlane | E+ | Getty Images
President Donald Trump is changing the way Americans can save through the creation of new investment accounts.
Soon-to-launch Trump Accounts will provide an initial $1,000 deposit to U.S.
The Burst
Will Markets Go Up Now That Trump Is President?
Donald Trump was the first president in modern U.S. history to take office without holding a prior public office or serving in the military. This non-traditional path to the White House came with a distinctly corporate approach to economic and fiscal policy, one that both excited and unnerved investors in equal measure.
Key Points
- Trump’s focus on tax cuts,
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Read MoreThe Ivy
Is David Tepper Seeing Cracks in Nvidia’s Armor?
David Tepper has trimmed his Nvidia stake which looks to be some profit-taking at first glance but we’re not so sure. Dig deeper, and you’ll find breadcrumbs that suggest this move may be more than routine rebalancing.
Beneath the headlines one pattern stands out like a sore thumb, David Tepper keeps dumping Nvidia,
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Read MoreThe Spotlight
Spotlight: 1 Gaming Stock The Kids Flocked To
While investors are paying attention to Presidential debates, global conflicts, and inflation, kids have their attention somewhere else, and for many adults an opportunity lies unearthed as a result.
Roblox is a gaming platform that has resonated with kids, teens and young adults in particular. While revenues absolutely mushroomed higher during the 2020-21 period for obvious reasons,
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