The S&P 500 has steadily declined for the past month, losing 4.2% MoM. The main reason, analysts cite, is Nvidia's failing to boost the broader market despite attaining all-time highs after positive company quarterly earnings reports.
As many investors are looking into the next Apply or Google in AI, growth investors have set their sights on the companies that provide the infrastructure for this rapidly growing industry.
It’s a narrowly focused market, and the positive outlook on AI has yet to translate into a positive outlook for the broader market.
In other news, the world economy continues to face headwinds cited as reasons for the slowdown in economic growth. China’s economy is faltering off the back of soft confidence in its real estate market, ongoing war in Ukraine and a knock-on effect on supply chain inputs, and lingering inflation as a result of Covid measures”, Andrew Boyd, co-founder of Forte Analytica cites when asked about his insights on the current economy.