Stock Market News Update

AI Returns On Investment In our January 2025 post, we outlined our concerns about the returns on capital expenditures for AI and AI-related stocks. We noted that while AI will be more significant than the Internet, that alone would not drive mega-cap performance in...

AI Related Investments In The Spotlight Much of the focus in the S&P 500 last week was on earnings. More specifically, the earnings of AI-related stocks. Google and Amazon earnings were optically strong, and while there is little concern that they will continue to...

Davos Legitimacy In The Spotlight At the World Economic Forum (WEF) in Davos last week, Trump asserted the dominance of the U.S. military, economy, stock market, and borders. However, his underlying message was the demise of globalisation. The capitalist system...

AI Data Center Power Grab There is increasing concern in the U.S. about the power consumption, water use, and quality of life in communities impacted by the growth of AI data centers. AI data centers are boosting electricity demand, pushing up prices for U.S....

S&P 500 Looks Past The FED A regime change at the Federal Reserve is expected within three to six months due to the anticipated change in Federal Reserve (FED) Chair and will have implications for the S&P 500. That regime change will likely shift domination,...

Santa Rally The S&P 500 ended a volatile week with a close above the key support level of 6800 and is now back in positive gamma. This positive momentum, in turn, will likely determine whether there is a Santa Rally into year-end. You might be surprised to learn...

AI Strategy Wall Street has been valuing AI-related companies in the U.S. as if they have infinite market potential. However, Sam Altman acknowledged earlier this year that the U.S.’s proprietary AI approach may prove to be restrictive. More specifically, OpenAI’s...

AI Capital Expenditure A Drag On Confidence As predicted last week, the response to Nvidia AI related earnings on Wednesday determined the direction of the S&P 500. Nvidia's earnings were optically strong, and while there is little concern that it will continue to...