this week
Artificial intelligence (AI) fears have reached new heights this week, with some blaming a futuristic viral blog post for Monday’s sell-off. But, here and now, there was some more positive AI news:
- Anthropic’s update on its enterprise AI agents actually boosted some software stocks because it included plugins for some of the same software companies that were caught in the AI-related selloff that has been going on for months.
- NVIDIA’s fourth-quarter earnings highlighted continued AI chip demand, with profits nearly doubling year over year and revenue ($78 billion) exceeding expectations in the first quarter. And yet, with investors questioning the sustainability of demand, the stock fell more than 5% the next day.
Therefore, amid concerns about the economic impact of AI and geopolitical tensions, there has been a flight to safety this week, causing 10-year Treasury yields to decline by 10 basis points to ~3.95%, while the Nasdaq-100® remained flat at the end of the week.
next week
Here are the top shows I’m watching next week:
- monday: Manufacturing PMI (February)
- Wednesday: AVGO Earnings (Q4) and Services PMI (February)
- Thursday: Productivity (Q4)
- Friday: Non-Farm Payrolls (February) and Retail Sales (January)
