"S&P 500 futures opened notably higher today by roughly 0.5 percent after four consecutive weeks of declines. The return of optimism around a potential December rate cut might power the positive tone at the U.S. stock market opening today. Investors appear to be reassessing the severity of last week's AI-driven selloff and shifting back toward risk assets as policy expectations soften. The diplomatic progress in efforts to end the war in Ukraine adds an additional layer of relief, offering a geopolitical tailwind that markets had not priced in during recent weeks."
"Concerns are escalating over the sector's reliance on cash-burning business models that lack visible paths to profitability. The WSJ notes that markets are becoming less tolerant of "fake it till you make it" strategies, where firms promise future breakthroughs while operating at steep losses. The muted reaction to Nvidia's strong earnings and its multibillion-dollar agreement with Anthropic illustrates that investors now demand clearer evidence of monetization rather than visionary narratives alone."
"This shift comes after global equities closed last Friday on a weak footing. Markets retreated on November 21 following a sharp reversal in the U.S. tech sector, triggered by a steep drop in Nvidia's shares. The selloff reignited fears of an overheating artificial-intelligence trade and prompted a broad liquidation in semiconductor stocks across Asia and Europe, with the Kospi and TAIEX absorbing the heaviest pressure back then."
S&P 500 futures opened about 0.5% higher after four consecutive weekly declines, fueled by renewed optimism about a potential December rate cut and softer policy expectations. Investors reassessed last week's AI-driven selloff and rotated back toward risk assets. Diplomatic progress toward ending the war in Ukraine provided additional geopolitical relief. Global equities had fallen after a sharp U.S. tech reversal triggered by a steep drop in Nvidia shares, which sparked semiconductor liquidations across Asia and Europe. Investor sentiment toward AI moved from unbounded enthusiasm to restraint amid concerns over cash-burning models lacking clear profitability paths, increasing demands for monetization evidence. Federal Reserve views showed growing fragmentation.
Read at London Business News | Londonlovesbusiness.com
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