https://www.bfm.my/content/podcast/nvidia-delivers-all-is-good-in-the-tech-space
Nvidia results were better than expected, much to the relief of markets as there were concerns over an AI bubble. We ask Tony Nash, CEO, Complete Intelligence for his first impressions of the results whilst asking if there are other tech names like Broadcom and Coreweave are also buy ideas.
The key takeaway this week is the market’s cautious pause, driven by two factors: a lack of new economic data and a healthy pause in high-flying tech stocks. With the ongoing government shutdown delaying key reports on inflation and jobs, investors are “flying blind.” This data blackout, combined with weak consumer sentiment and profit-taking in the AI sector, is leading to a marginally negative trend as the market waits for a clearer picture.
The CI Markets platform forecasts a negative short-term move for Nvidia (NVDA), which has been the poster child for the market’s AI-driven rally. This appears to be a necessary and rational cooling, not a sign of a crash. After a massive run-up, investors are reassessing valuations. This profit-taking in the market’s leaders is a primary factor weighing on broader sentiment.
The forecast for the S&P 500 (GSPC) is also negative, reflecting the market’s cautious, wait-and-see approach. The sell-off into the close on Friday suggests that, in the absence of positive data, the path of least resistance is a mild downward drift. This trend is being driven by the combined uncertainty from the tech correction, weak private consumer sentiment data, and the data blackout from the government shutdown.
CI Markets forecasts upward pressure on Gold (GC=F). This is a typical market reaction to uncertainty. With investors flying blind without the official jobs and inflation data, many are moving some capital into hard assets like gold. This is a common defensive position, acting as a hedge until the government reopens and provides a clearer economic picture.
The market’s current negative trend seems to be a logical pause, not a panic. The combination of a tech-led profit-taking cycle and a government-induced data blackout makes it difficult for investors to commit new capital. This cautious sentiment is likely to persist, but it could change quickly. If the government shutdown ends and the delayed economic data starts to paint a more positive picture, this trend could reverse.
The content presented in this note is for informational purposes only and should not be construed as investment, financial, or trading advice. This analysis is generated from the output of Complete Intelligence’s proprietary artificial intelligence platform and does not constitute a personal recommendation. You should not base any investment decision solely on this material. Please consult with a qualified financial professional before making any investment decisions. Complete Intelligence is not liable for any actions taken based on the information provided herein.
The key takeaway this week is the test of the market’s conviction. While the Federal Reserve’s dovish rate cut provided a powerful bullish catalyst, a rally that faded into Friday’s close suggests investor hesitation. The week ahead will reveal if the market can overcome this consolidation and build sustained momentum on the new, more favorable interest rate environment.
The Fed’s rate cut is a massive tailwind for the tech-heavy NASDAQ. However, a weak close on Friday after an initial surge suggests some investors were quick to take profits. This sets up a crucial test for the week ahead: can the market look past the short-term consolidation and build on the fundamental support of lower rates? The CI Markets platform’s strong positive forecast suggests that it can, and that the path of least resistance for tech is now higher.
As a high-beta leader in the AI space, NVIDIA is at the epicenter of this test. A dovish Fed is a green light for investors to chase the most powerful growth stories, and few are as compelling as the AI narrative. The CI Markets platform’s strong upward forecast indicates that despite any market-wide profit-taking on Friday, the powerful AI theme, now supercharged by lower rate expectations, is expected to attract significant new capital and reassert its leadership.
The positive forecast for the S&P 500 is critical because it confirms the rally is not just a speculative tech phenomenon. It shows that investors believe the Fed’s dovish turn is a positive for the entire economy, reducing recession fears and supporting corporate earnings across the board. The strength in the broad market suggests the rally has a solid foundation and is not just built on a handful of high-flying tech names.
The Federal Reserve has provided the fuel for a significant market rally. The immediate hesitation seen late Friday, however, means the rally’s durability is now being tested. The positive forecasts for both the broad market and its technology leaders suggest that after a brief consolidation, the market has the fundamental support it needs to overcome this caution and continue its upward trend.
The content presented in this note is for informational purposes only and should not be construed as investment, financial, or trading advice. This analysis is generated from the output of Complete Intelligence’s proprietary artificial intelligence platform and does not constitute a personal recommendation. You should not base any investment decision solely on this material. Please consult with a qualified financial professional before making any investment decisions. Complete Intelligence is not liable for any actions taken based on the information provided herein.
