The S&P 500 and the Nasdaq are getting dragged lower as Nvidia shares extend losses. The catalyst was the WSJ report saying that Alibaba developed a new AI chip to help fill Nvidia void in China.
The Chinese are of course trying to make their own AI chips given the interference from Trump’s adiministration. While Nvidia is falling, Alibaba shares are obviously rallying on this latest news.
In the bigger picture, the stock market will move more on what happens with the US labour market data next week and the Fed. But in the short-term, this could provide a pullback, especially given month-end and data risk.
