Tuesday's News After Stocks Sank Again

When Nvidia (NVDA) fell by a decisive 5.55% last Friday, the stock market drop on Monday was a potential start of a downtrend. The market is digesting the latest nonfarm payrolls report along with the inflation report issued this morning.

Companies supplying artificial intelligence led markets higher, leading to a long run-up that started on Sept. 2023. Analysts pointed out that of the magnificent seven stocks, markets left behind Apple (AAPL) and Alphabet (GOOG). Understandably, Microsoft (MSFT), Meta Platforms (META), and Amazon (AMZN) have strong prospects in the AI space. Apple risks reporting slower device and subscription sales as consumers cut back on spending.

Negative publicity for Alphabet’s Gemini, its answer to ChatGPT, adds uncertainties to the search engine giant’s outlook. Google does not have the luxury to launch an inferior AI solution.

Markets will watch the lawsuit against Tesla (TSLA) closely today. The lawsuit alleges that Tesla knew that its customers would not watch the road when they used autopilot.

Watch Two Data Points

The CPI report will introduce higher-than-usual volatility for stocks. On Thursday, the markets will brace for the producer price index report. Ahead of the reports, financial services stocks were steady while regional banks like New York Community Bancorp (NYCB) fell by 5% on Monday.

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