Stock markets diverge
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With inflation eating into your savings, relying solely on your nine-to-five paycheck might not be enough. This is where investing comes in. The stock market is in the red again, with major indexes wobbling on renewed concerns about economic growth and interest rate policy.
The stock market has been pricing in a strong economy, even if “conditions are lining up to disappoint those elevated expectations,” says Bob Elliott, co-founder of Unlimited Funds.
While investors may be concentrating their bets on key tech stocks such as Nvidia (NVDA), Microsoft (MSFT)and Alphabet (GOOG, GOOGL), which are all big AI plays, it may also be symptomatic of an unhealthy market. In contrast, a broader market would see more stocks hitting highs, as “a rising tide lifts all ships.”
Live Updates Live Coverage Has Ended Monday Wrap-up 4:11 pm The Vanguard S&P 500 ETF closed at 591.36 Monday, down 0.04%. BREAKING NEWS: INTEL 12:32 pm Bloomberg just reported — literal seconds ago — that the Trump Administration is discussing taking a 10% stake in Intel (Nasdaq: INTC).
The stock market is heading into a catalyst-filled week as Fed Chair Jerome Powell gets ready to speak at Jackson Hole and big retailers report earnings.
On Wednesday, Wall Street settled on a mixed due to continued sell-off in the technology stocks and mixed retail earnings. The S&P 500 index fell 0.24 per cent and the tech-heavy Nasdaq Composite index was down 0.67 per cent. However, the Dow Jones Industrial Average index closed almost flat with a positive bias.
This AI infrastructure play has delivered bigger gains than its larger peers since going public earlier this year.
In a stock market obsessed with artificial intelligence, Amazon.com Inc. is losing ground.The company’s shares have been lagging the Nasdaq 100 Index for most of the year, and the gap has only widened in the two weeks since Amazon’s July 31 earnings disappointment.
The AI boom could be a $16 trillion gift to the stock market, but AI-driven value creation could mean tough times ahead for workers.
So, if you had invested $1,000 in Tilray five years ago, you'd have about $163 left as of this writing. By comparison, $1,000 invested in the S&P 500 five years ago would be worth $2,067 today.
Stocks often rise the week of the Fed’s big Jackson Hole gathering. Don’t count on it this year.