US Consumer Sentiment Plunged
The University of Michigan consumer sentiment index fell to 50.3 in November, down from the previous month 53.6. The drop comes as the US federal government shutdown drags on, heightening household anxiety.
AI Stocks Are Under Pressure
AI stocks have been coming under pressure recently with a notable decline in their valuations and stock prices. The sector has faced selling pressure due to concerns about high valuations, potential bubble risks, and skepticism about whether the massive investments in AI will generate sufficient profits. Major AI-related stocks like Nvidia, Palantir, Oracle, and others have seen significant drops in their share prices over the past week, with declines ranging from around 7% to over 10%. This has contributed to broader tech sector weakness and market volatility.
US FED Operating Under Data Fog
Continuing US government shutdown means a lack of crucial datasets like the employment and the CPI reports. While private sector surveys are available, they are not as comprehensive as government ones. The risk of policy error rises, the longer the government shutdown prevails. The good news is that there is a glimmer of hope as some moderate Democrats are working with the Republicans to re-open the government.