By Bill Stone
Publication Date: 2025-11-23 12:00:00
Artificial Intelligence’s Multi-Billion Dollar Bet: Will Massive Spending Spark the Next Rally or Fuel the Decline?
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After Friday’s rebound, the S&P 500 is still 4.1% below its late October peak. Even a stellar earnings report from NVIDIA (NVDA) failed to spark a rally as tech stocks underperformed the broader market during this downturn. So what are distressed stocks?
The immediate cause of the recent weakness can be divided into five main causes:
- economic nervousness,
- Federal Reserve policy,
- spending on artificial intelligence,
- willingness to take risks and
- Evaluation.
Market returns
Glenview Trust, Bloomberg
Economic nervousness
Even though the U.S. government has reopened, economic releases are still delayed, making the economy’s strength less visible than usual. Last week the delayed jobs report for September was released. While nonfarm payrolls rose better than expected at 119,000, the details were less impressive than the overall figure. It is noteworthy that the past few months have been revised downwards, which…
