NVDA cont'd to slide for another day?
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On Wed, 29 Jan 2025 US market continued to slide for another session, despite the expected.
That is the Fed kept interest rate status quo (4.25% to 4.5%), as per CME Fed Watch tool predictions.
By the time 4pm came knocking
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DJIA : - 0.31% (-136.83 to 44,713.52)
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S&P 500: - 0.47% (-28.39 to 6,039.31)
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Nasdaq: - 0.51% (-101.25 to 19,632.32).
Market continued to decline because of the hinted hawkish tone in the FOMC conference that followed.
For the first time in the Fed statement did not include that inflation "has made progress toward" the Fed's 2% inflation goal.
With the FOMC meeting over, policymakers will be a hiatus until the March 18-19, that's when FOMC will next convene.
According to Trade Station, Global HD of Mkt strategy, David Russell:
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Fed's meeting break enables a clean break as the newly inaugurated Trump administration takes the spotlight, with its new policies roll out.
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Data (from new policies rollout ) between now and March 2025 will set the tone for Fed's next big "interest" decision.
On Wednesday, $NVIDIA(NVDA)$ continued to cool. It further fell by -4.10% to $123.70 by closing time. (see below)
Release of Chinese DeepSeek entrant, equally efficient and at cheaper costings (AI system trained for just $5.6 million) is stoking fears that the US is lagging behind.
$UBS Group AG(UBS)$ , Chief Investment Officer, Solita Marcelli has shared:
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Keep an eye on earnings results from companies in the tech sector
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Be ready to jump on any choppiness in the market.
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Traders should build out positions around longer-term growth areas with artificial intelligence, as well as in the power and resources space.
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AI is here to stay.
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If anything, DeepSeek reinforces that ideal.
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Latest developments also show that investment approaches that are too concentrated or overly passive can be risky, as value can quickly shift within the AI ecosystem
An active and diversified approach is a better way to gain exposure to AI.
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Do you think Nvidia will be able to stem it's slide ?
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Do you think the advise UBS dished out sounds logical, when trading in current US market ?
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