What we’re reading (11/18)
“Nvidia Results And Delayed Jobs Data Set Up Critical Test For Wall Street” (Wall Street Journal). “A selloff in Nvidia has dragged down indexes, with Peter Thiel’s macro hedge fund and others dumping shares. The tremors extended beyond other AI names into crypto, gold and more. Even Warren Buffett’s latest big-tech bet, on Alphabet, hasn’t stanched the bleeding. America’s richly valued stock market has retreated in similar fashion multiple times during its yearslong run-up. In every instance, bargain hunters snapped up stocks, tech giants pumped out profits and the economy kept motoring ahead.”
“Trump Says He Thinks He Knows His Choice For The Next Fed Chair” (Yahoo! Finance). “President Trump hinted Tuesday that he has started interviewing candidates for the next Federal Reserve chair and said he thinks he knows who his pick will be for the position. ‘I think I already know my choice,’ Trump told reporters in the Oval Office, regarding who will replace outgoing Fed Chair Jerome Powell, whose term ends in May.”
“This Is How Our Economy Comes Crashing Down” (Rebecca Peterson). “Economic growth is robust and stock markets are hovering around record highs. Set on a foundation of supportive fiscal and monetary policy, the tower appears sturdy enough. But a closer inspection shows that an increasing number of structural supports — across businesses, labor markets, consumers and stocks — are looking wobbly. A Jenga-like collapse, meaning an unexpected economic downturn, is not inevitable. But it is a growing, underappreciated possibility.”
“The Crypto Trades That Amplified Gains Are Now Turbocharging Losses” (Wall Street Journal). “Daily total liquidations on crypto exchanges have been on the rise this year. But in October, they shot up to a record high, according to data from CoinGlass, after President Trump’s surprise tariff announcement against China triggered a crypto selloff that compelled exchanges to close out underwater positions.”
“Main Street Bellwether Home Depot Gives Alarming Sales Update That Points To Recession” (Daily Mail). “On Tuesday morning, the home improvement chain said it served fewer customers in the past three months than expected. Its earnings come as Wall Street hits a concerning stretch of losses. In the past week, all three major stock indexes are in the red as investor confidence in AI begins to slide.”
