Nvidia's Big Drop Shakes Up Tech Stocks: Markets Take a Breather
Stocks have hit a rough patch as Nvidia's value plummeted by $430 billion, sparking concerns about the tech rally slowing down. Nvidia, a leader in AI, saw a 13% drop, affecting the overall tech sector. This has led some experts to predict a pause in the market's upward trend. The S&P 500 dipped, while energy and financial stocks rose. Bitcoin also fell below $60,000 amid market uncertainty. A recent survey shows that many investors plan to reduce their stock holdings, expecting a possible market correction later this year.
Deutsche Bank: US Credit Safer Than Treasuries Amid Rising Deficits
Deutsche Bank suggests that US investment-grade credit is a safer bet than Treasuries due to increasing government spending and rising deficits. Regardless of the upcoming presidential election, spending is expected to go up. The Congressional Budget Office projects the US budget deficit to reach almost $2 trillion this year. Financial institutions' notes might offer good opportunities due to strong earnings growth. Deutsche Bank advises considering investment-grade credit for better returns in fixed income investments.
Oil prices steady amid rising tensions and economic data watch
Oil prices remain stable as traders assess rising geopolitical tensions from Yemen and Russia. Brent crude is trading near $86 a barrel, while West Texas Intermediate is below $81. Increased attacks by Houthi militants and Russia's accusations against the US are contributing to market uncertainty. Despite this, oil is set for a monthly gain, with signals of tightening supply. Traders are also keeping an eye on upcoming inflation data and economic reports, which could influence crude prices. Meanwhile, money managers have shown strong bullish interest in European diesel and Brent futures.
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