Have you heard about Micron’s latest AI venture? It’s being hailed as the next big thing in the tech world, and for good reason. Among the various asset bubbles we’ve seen since 2021, this one seems to have some solid footing. But before we get too carried away, let’s take a closer look at what’s been happening in the tech sector.
Nvidia and Meta (formerly known as Facebook) have been dominating the scene lately, leaving other tech giants like Tesla and Apple in the dust. With impressive year-to-date gains, it’s clear that investors are placing their bets on AI-focused companies. But here’s the kicker – while Nvidia and Meta soar, Tesla and Apple are taking a bit of a beating.
Now, let’s shift our focus to the ever-ominous topic of interest rates. There’s been quite a buzz about potential rate cuts in 2024, but recent trends suggest otherwise. Trade interest for “no rate cuts in 2024” has surged, indicating a shift in market sentiment. What’s more, initial expectations of multiple rate cuts have dwindled, with less than three cuts now anticipated for the year.
So, what does all of this mean for investors? Well, it seems that the tech sector may be stretching itself a bit too thin, while hopes for rate cuts dwindle. This combination could spell trouble for the market ahead.
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Micron is the latest AI moonshot.
Of the three asset bubbles since 2021, this is the one you can believe. pic.twitter.com/jXGs5JXWCn
— Mac10 (@SuburbanDrone) March 21, 2024
Magnificent Seven? It’s More Like the Blazing Two and Tepid Five
Nvidia and Meta have pulled away from the rest of the once-hot group as investors focus on AI.
Year to date Nvidia and Meta are up 81% and 41% while Tesla and Apple are down 31% and 9%t.co/Kv2dBF5zDD pic.twitter.com/oLEzVY4Vps
— Global Markets Investor (@GlobalMktObserv) March 21, 2024
Trade interest for "no rate cuts in 2024" has skyrocketed:
Since January 1st, trade interest for no cuts in 2024 has risen by a whopping 140%, according to Zerohedge.
As we kicked off 2024, markets were beginning to price-in a case with EIGHT rate cuts in 2024.
Rate cut… pic.twitter.com/jeIOTJAruQ
— The Kobeissi Letter (@KobeissiLetter) March 21, 2024
ZeroHedge: Price Inflation Accelerates for Second Month as Biden Blames “Greed”
The Bureau of Labor Statistics reports a continued increase in the Consumer Price Index (CPI) inflation rate, marking a 3.2% rise year over year in February. This marks the 36th consecutive month where inflation has surpassed the Federal Reserve’s 2% target. Contrary to earlier predictions, the recent data suggests that the inflationary trend is not as temporary as previously thought.