Stock Market Bounce, Volatility Drops, Amazon’s Push Into AI Chips
Stock markets continued where they left on Friday, with the S&P 500 climbing by roughly 1.4 percent, bringing the index to roughly 2,655. The index continues to make headway rebounding from the steep sell-off last week, that saw the index touch 2,535 at the low point.
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The chart suggests the S&P can continue to rise toward 2,690 without hitting any resistance, about 1 percent higher than its current level.
The VIX continues to decline, and that is a positive for the stock market, with it now trading around 25, well off the highs around 48 seen last week.
Yields on the 10-year continue to hold around 2.85 percent. A trigger point for yields will come Wednesday morning when CPI is reported.
Apple shares are also building on their steep sell-off and have bounced support at $150.
It would seem for the most part the market continues to recover, and showing signs that volatility may at least be passing for the short-term and while it is always hard to say that the worst is over. It would at least seem that for now things certainly are feeling much better.
Did you notice that Amazon is going to start making its chips for Artifical Intelligence? It sure caught my attention, and apparently, the markets with Nvidia’s stock trading lower on the day, by about 2 percent to roughly $228. The question, does it mean anything?
Well, we have seen Apple do the same when it came to some of its suppliers like Imagination Technology and Dialog Semi. It just makes me wonder if any of these big technology companies could decide to the same and what that means for some of the big chipmakers? Something surely worth thinking about and exploring further.
That is going to be it for today.
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