Not surprisingly, the sell-off propelled the Nasdaq into correction territory (a drop of 10% or more from its recent high); after all, that’s where the bulls were most bullish and where the bubble has been the biggest: in AI moves and especially in the so-called Magnificent Seven.
The Nasdaq’s 2. 2% drop on Friday dragged it into a correction as worries about technology valuations and a slowing economy collided, and valuation considerations outweighed it decisively.
A weaker-than-expected July jobs report didn’t help, but disappointing forecasts from Amazon and Intel due on Thursday reverberated through markets on Friday, reinforcing valuation concerns and simmering enthusiasm. for Apple.
As a result, growing concerns about cash flow into AI with no obvious gains and fears of an overall earnings hit have caused bulls in and around Big Tech to lose confidence and sell.
Friday was therefore marked by tension to reap all the benefits that can be gained from the mega-cap boom and the AI bubble, with investors retreating to the sidelines, ignoring the positive jobs data.
That left the Nasdaq down 10. 2% from its July 10 final record of 18,647. 45 points. The S
An index or stock is most likely in a correction, indicating investor pessimism, when it closes 10% or more below its previous trailing record.
The recent sell-off on the Nasdaq comes after investors sold off Wall Street’s most prominent stocks following the lackluster effects of Tesla and Alphabet. This has compounded investor concerns about exaggerated valuations and fears that a rally driven by optimism about AI generation is too extensive.
Intel shares lost 26% — more than Thursday’s roughly 22% drop in after-hours trading — after its quarterly effects and announcement of massive job and expense cuts made it clear that the once-dominant chipmaker had completely lost its way. Its price tag remains at $97 billion, making it too giant to take over, given the existing problems.
Nvidia, Microsoft and other Big Tech stocks have been the main drivers of Wall Street reaching all-time highs in 2024, driven by expectations of interest rate cuts this year via the US Federal Reserve and the euphoria around AI.
For the moment, nothing more. The June/July quarterly earnings season is coming to a close, with media and trading kicking off this week and next, followed by the big end of the month with Nvidia.
What’s causing this sell-off is the small amount of “bad” news that triggered it: a lackluster survey of the manufacturing sector and several other sectors of the economy, followed by a weaker-than-expected jobs number.
Activity surveys have been weak in the United States for months. There was a brief correction on the same basis a few months ago, but customer spending remains strong (as the retail sales figures show), inflation is declining, investment remains strong, the breakeven business is weak and the hard labor market is declining. also solid.
In addition, August is a month of low turnover, as investors and the like take summer vacations. Volumes and interest increase after Labor Day, September 2.
Morningstar noted last week that in the past 36 years, August was the worst month for the Dow Jones and the second-worst month for the S&P 500, the Nasdaq and the Russell 2000 (an index that covers small-cap companies). Training
Normally, the weak jobs report would have been upbeat, after Federal Reserve Chair Jay Powell firmly put a rate cut on the table at next month’s meeting.
In fact, the same people now criticizing the Federal Reserve for not cutting rates this week were the same ones who were on the hunt for a rate cut next month, with no qualms about what the bank didn’t cut at last week’s meeting.
The S
At its lowest point of the session, the index of 30 leading stocks fell 989 points.
All of this caused Wall Street to fall day and week, bond yields fell, as did oil costs and the US dollar. Rose gold. Dollar weakness was and is not a general fact when volatility increases.
United States job expansion in July slowed more than expected, while the unemployment rate rose to its highest point since October 2021. Nonfarm payrolls rose to just 114,000 last month, a slowdown from the 179,000 jobs created in June (compared to the first 206,000). of all those announced) and below the 185,000 expected by economists. The unemployment rate rose to 4. 3%, the highest in two years and well above the 3. 5% in July 2023.
Jim Reid, a specialist in global economics and thematic studies at Deutsche Bank, wrote in a note on Friday: “In the last 24 hours we have seen a precarious environment for risk markets, with risk aversion following another weak knowledge circular yesterday most commonly followed by disappointing overnight technology gains.
The yield on the 10-year Treasury bond fell to its lowest point since December (3. 79% for the 10-year bond, 3. 89% for the 2-year bond) as investors flocked to bonds in search for security. I just hit a record high for a few days, so the gain wasn’t that big.
In the week, the Dow Jones 2. 11%, the S
The Nasdaq has now returned to levels last seen in late May, so all of the gains from June and especially July have been erased.
And what can all those AI systems tell investors about what will happen now and what they will do?
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Deep Leads Resource Increases Across the Board: Quality, Tonnage and Target Zone ABx Group has reported a 30% increase in its mineral resource estimate (MRE) at the rare ion adsorption clay earth deposit ( IAC) from Deep Leads in northern Tasmania. The accumulation at MRE comes from 36 assayed exit wells, representing a significant northward extension to the existing Deep Leads prospect.
Lake Resources (LKE. ASX) – LKE has signed two non-binding memorandums of understanding within 10 days. Ford Company (Ford) has signed a memorandum of understanding for about 25,000 t/year and last week, Hanwa, a Japanese commodity trader, signed a memorandum of understanding for up to 25,000 t/yr. Subject to execution, this is a feat as Ford and Hanwa are prepared to engage in long-term strategic partnerships with LKE. Commercial negotiations are still ongoing but should, namely whether Ford and Hanwa will inject new capital into LKE, removing additional risks in financing the task and thus ensuring that LKE and Kachi are fully funded.
Two recent gravity studies have particularly exceeded expectations and revealed prospects for expansion of the existing MRE in Lake Throssell, as well as an opportunity for significant expansion in Lake Yeo. This reinforces the prospect of a multi-decade Tier 1 SOP production center around Lake Throssell.
TMG is currently completing work for the PFS planned in early 2023, adding the start of drilling in the third quarter of 2022, evaporation testing and authorization activities. The effects of those systems will affect the PFS and any long-term resource updates.
The reference prices of SOPs have risen to around USD 940/t due to recent geopolitical events. The October 2021 scoping study assumed an SOP value of $550/t and contained a sensitivity study showing that each 10% accrued in value effects at a cumulative $144 million NPV of the $364 million allocation. The accumulation of about 70% compared to the scoping study implies a NPV allocation of approximately $1. 4 billion.
Despite the fall in oil and fuel prices, which fell by 5. 4% and 19. 7% respectively in August, Calima managed to show an improvement in its main indicators.
WT Financial Group Limited (WTL) is a fast-growing diversified monetary company, founded in 2010 and indexed to the Australia Securities Exchange (ASX) in 2015. Their recommendations and product offerings are primarily provided through an organization of independent money advisors acting as legal advisors. Representatives. WTL in connection with its broker organization activities Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group). He has approximately 275 advisers at over two hundred money advisory firms across Australia. It also operates a direct-to-consumer operation under its Spring Financial Group brand.
In May 2021, Corporate Connect analyst Marc Sinatra published a full study report on ASX-listed biotech Immutep Ltd (ASX: IMM). It was so inspired by IMM that Corporate Connect found it imperative to publish a follow-up report valuing the company, as the market did not see the great prospects of eftilagimod alfa (efti).
This follow-up report was released today. Using comparables, after adding a monetary rebate to its EV estimate and dividing by the total number of percentages issued, Corporate Connect now puts the fair price of a percentage of Immutep at AU$2. 20.