"The broad index of large-cap companies in the S&P 500 closed flat, but the tech-heavy Nasdaq 100 rose 0.55%. Tech stocks were led by Nvidia, which was up 3%, and now has a market cap of more than $5 trillion. (Its stock is down 0.7% premarket this morning, suggesting that some traders are taking their overnight gains.) To put that in perspective, Nvidia's market cap is bigger than the GDP of every G7 country except the U.S. and Japan."
"These companies-the companies that are so highly valued-actually have earnings and stuff like that. So if you go back to the '90s and the dotcom, they were-these were ideas rather than companies ... So there's a clear bubble there. Whereas the-you know, I won't go into particular names, but they actually have earnings, and, you know, it looks like they have business models and profits and that kind of thing. So it's really a different thing," he added."
Jerome Powell cut interest rates by 0.25% and repeatedly downplayed fears of an AI-driven valuation bubble, saying data center spending is not especially interest-sensitive and that many AI firms have earnings and business models. Powell contrasted current AI companies with 1990s dotcom firms, calling the situations different and implying no need to raise rates to curb AI investment. Markets reacted unevenly: Meta and Microsoft sold off, Google jumped 7%, Bitcoin fell to $110,000, the S&P 500 closed flat, and the Nasdaq 100 rose 0.55%. Nvidia led gains and surpassed a $5 trillion market cap.
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