"Nvidia ( NASDAQ:NVDA) reported some pretty stellar quarterly results, and with upbeat commentary from CEO Jensen Huang, it seemed like the "AI bubble" fears were off the table for a while, at least as of Thursday morning, when stocks bounced back with fury, only to shed the gains and then some going into the close. Undoubtedly, investors were taken on quite the ride, to say the least."
"And while it's never fun to see gains from a great quarter be wiped out in short order, I do think that it's such painful days that lead to the greatest opportunities. Buying on days when it can be quite sickening to check in on your stocks might just be necessary to get a price of admission into a cherished name at a discount."
"With a Fed rate cut in December now in doubt, it seems like markets are ready to look into the new year for catalysts. Whether that's the next round of earnings season or the next big Fed meeting, there might not be anything other than oversold conditions that pave the way for a year-end bounce. So much for those predictions of the S&P 500 hitting the 7,000 level!"
Nvidia posted stellar quarterly results and CEO Jensen Huang offered upbeat commentary. Stocks initially surged then reversed, erasing gains by the close. Investors experienced a volatile ride, and sharp pullbacks create buying opportunities to obtain shares at discounted levels. Doubt about a December Fed rate cut has markets looking to the new year for catalysts, with year-end rallies unlikely without fresh momentum. Negative market reactions to broadly strong earnings emphasize AI valuation concerns. As valuations retreat, a market correction may unfold, and a normal, periodic correction is preferable to a catastrophic bubble collapse.
Read at 24/7 Wall St.
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