"The S&P 500 is starting to feel like it's about to roll over again, even after a nice Thursday session of relief in response to some cooler CPI (consumer price index) data. Less inflation could grant the Federal Reserve a bit more flexibility to pursue further interest rate cuts in the new year, even though they've hinted that the cuts could be fewer and farther between."
"With Micron Technology ( NASDAQ:MU) also popping more than 10% in a day, it feels like there's more of a tug-of-war going on in the tech and AI trades. Undoubtedly, Micron's strong results might not be enough to save the tech trade again, especially as the tech-heavy Nasdaq 100 continues to wobble over AI bubble concerns and hefty valuations across the tech sector."
"The big AI spenders have been punished, and there might still be time to serve in the penalty box as Santa rally season comes and goes, perhaps with little in the way of upside momentum to get excited about. At this juncture, it seems like Santa won't be delivering the gift of gains to investors, but perhaps the gift of lower valuations on a number of stocks that are already cheap-looking right here."
"Oracle ( NYSE:ORCL) has been described by some as the poster child for the AI bubble. And while it has been a painful decline (shares are currently down more than 45% from their peak) for the AI cloud infrastructure juggernaut amid what can only be described as an AI spending panic, I do think it's a bad idea to bet against CTO Larry Ellison, especially as he transforms the company once again to capitalize on the next big tech trend."
The S&P 500 appears poised to roll over again despite a Thursday relief rally after cooler CPI data. Lower inflation could give the Federal Reserve more flexibility to consider interest rate cuts next year, although cuts may be fewer and farther between. Micron Technology jumped more than 10% on strong results, but the tech-heavy Nasdaq 100 still wobbles amid AI bubble concerns and high valuations. Large AI spenders have been punished, reducing upside momentum during the Santa rally season. Falling prices are creating lower valuations and potential bargains for investors, particularly younger buyers with capital to deploy. Oracle has plunged over 45% and remains a prominent AI-related turnaround candidate under Larry Ellison.
Read at 24/7 Wall St.
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