It's been a busy week, between the release of Alphabet's new Gemini 3 AI model, Nvidia's strong earnings, and the long-overdue September jobs report. A few weeks ago, this slew of news, positive for the longs, would've been cause for celebration.
But even with the S&P 500 barely 5% below all-time highs, the vibes have been discordant these past few days. Stocks sold on good news, AI-flavored news releases aren't moving stocks anymore, and we've even got NBA players wearing hoodies that say "2008 Global Financial Crisis." (Everybody wants a piece of the bubble talk now.)
Valuation concerns seem to have outpaced Nvidia's earnings, Alphabet's big leap forward with Gemini 3 Pro, or even the stellar jobs report.
Friday Reading:.
You could say that maybe good news is bad news and bad news is still bad news. The longs have won so much that investors have gotten tired of winning and need a break. In the S&P 500, the tech sector is the worst-performer -- one of just two indexes in decline today (out of 11).
At the end the week, however, there's a chance of some reprieve from the selling. Despite consumer sentiment sinking to a near record low, U.S. stock indexes are rallying today. The Russell 2000 (+1.47%) is soaring, maybe on hopes of a December interest rate cut from the Federal Reserve not being completely ruled out. It's trailed by the large-cap indexes -- the Dow (+0.95%), S&P 500 (+0.72%), and Nasdaq (+0.55%).
TurboTax Via TheStreet
