Investors see the tech‑heavy Nasdaq‑100 slipping toward a 10% correction as AI‑related capex sparks doubts over returns. The sell‑off intensifies ahead of earnings from Microsoft, Meta and Amazon, putting pressure on the sector’s valuation and testing whether trillions spent on AI can deliver profit.
Apple reclaimed the $5 trillion market‑cap crown from Nvidia, up 26% YTD, just as Tim Cook prepares for his last earnings call as CEO. The rally rests on a 20% iPhone sales surge and new smart‑home hardware, signaling the company’s focus on consumer products while rivals battle cash‑flow woes.
The FOMC left the federal funds rate at 3.5‑3.75% but three regional presidents, Cleveland, Minneapolis and Dallas, cast dissenting votes to raise it by a quarter point. It’s the first three‑vote hawkish split since 2016, underscoring growing inflation concerns and tightening market expectations.
Jeffrey Gundlach said the Treasury curve’s split shows investors doubt the Fed will act, and bond‑market vigilantes are demanding rate hikes to hit the 2% inflation goal. The 10‑year yield jumped 7 bps to 4.68% while the two‑year fell, signaling pressure on policymakers. Gundlach argues the Fed must move beyond rhetoric.
The State Department unveiled the AI SPARK program, a $2.5 bn effort to fund American AI exports to Southeast Asian governments. Chinese startups are gaining market share by offering lower‑cost alternatives, threatening U.S. influence in the region's digital transformation.
You’re caught up.
That was all 5 stories in the 30 July issue.