Lates News

Analyst Adam Button said that the price movement of US stocks today is not what bulls hope to see. On a seemingly high trading volume day, many stocks are leaving an ugly candlestick on the chart. I have been arguing this week that there is a bubble in Nvidia, and the performance of Google's Gemini 3 further strengthens this argument. Google has proven that it can create incredible large language models (LLMs) without Nvidia chips, which means that other companies can do the same and this will lower Nvidia's profits. The problem is that Nvidia itself accounts for 8% of the S&P 500 index, so halving the value of this stock will directly reduce the index by 4 percentage points. In addition, there is a possibility of cleaning out all the other bubbles in the AI field. Another change in the past few weeks is the Federal Reserve. Powell opposed a rate cut in December and now the market pricing has shifted from almost certain to just 36%. A less dovish Fed is never good news for the market, it's a drag. In conclusion, I am not too worried about the Fed, but the situation with AI is always "on the edge".