The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Open AI
Open AI, a private company, disappointed but its size and significance was enough to send a chill through public equity markets. The story leaked out overnight and affected overseas markets as well as our futures. The S&P opened down about 40 points and wandered around in the red for the entire day. The earnings results of the publicly traded companies that also released last night/this morning didn’t counter the Open AI story. The Treasury curve lifted a bit in the belly. The crude curve steepened. Precious metals took a hit and the Dollar strengthened small. Capital flow was very light again, 86%.
The Open AI news would have been cataclysmic a few months ago, when the zeitgeist of the market was any-and-all-things-AI. For unclear reasons, the market seems to be comfortable with non-eye-popping results in the AI space. Perhaps investors are focused on other things?
The leading candidates for other concerns are:
The Fed is expected to hold rates steady. This is Chairman Powell’s last meeting and press conference as Chairman. The Street is very curious as to what he’ll say. The smart money is that he’ll communicate the usual data-driven messages but who knows? The wildcard possibility is a bit tantalizing. Also, the Street is very eager to discern if the Committee has guidance and/or a view on how it’s incorporating the economic consequences of the US/Iran war.
Again, the smart money is that the leanings of the Committee will remain secret but you never know.
See you tomorrow.
-Mike
Visdom Market Commentary
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