- Futures bets on the Nasdaq 100 and the S&P 500 were both pointing strongly up this morning prior to the opening bell in New York, suggesting that some traders think yesterday’s bloodbath in the markets was overdone. The S&P lost nearly a full percentage point yesterday, and the Nasdaq was down 1.47%. Some on Wall Street think the Fed is done cutting rates for the year.
Wall Street is trying to figure out if the AI spending reported over the past couple of days by Meta, Microsoft, Alphabet, and Amazon is a good thing or a bad thing. Amazon was up 13% post-market after it reported strong cloud revenues. But Meta lost 11.33% yesterday after it announced it would issue $30 billion in bonds to fund $72 billion in capital expenditures, mostly on AI and data centers. Microsoft was down another 2.9%, also because its AI spending was greater than investors had expected. Nvidia lost 2%, as well.
