"The pullback is getting worse for markets. The S&P 500 is now below the 50-day moving average, which has been support since early August. And unfortunately, its 39-point decline in premarket may set it up for a test of 6,550. Meanwhile, Dow futures are down 411 points, with Nasdaq futures down 217. Not only are markets reacting to fears of a potential AI bubble, but also on fears the Federal Reserve may not cut rates again this year, with lower odds of a cut."
"Just this morning, Stifel reiterated its buy rating on the tech giant with a price target of $250 from $212 a share. "CEO Jensen Huang's recent keynote at GTC Washington D.C. outlined the company's ongoing positioning as the backbone of AI infrastructure underpinned by more than $500bn in cumulative order book for Blackwell and Rubin infrastructure spanning 2025-2026," said the firm, as quoted by CNBC. "With consensus (and our) expectations incorporating Mr. Huang's commentary, expectations remain elevated.""
Equity markets are weakening as the S&P 500 falls below its 50-day moving average, reversing a support level in place since early August. Premarket declines and falling futures indicate a potential test of 6,550 on the index, with Dow and Nasdaq futures also down sharply. Market sentiment is pressured by concerns over a potential AI valuation bubble and reduced odds that the Federal Reserve will cut interest rates again this year. Despite heightened macro risks and volatility, analysts continue to issue buy ratings and raise price targets on Nvidia and reiterate bullish views on Amazon, citing strong demand drivers and sales expectations.
Read at 24/7 Wall St.
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