Capital Market Follower Daily Blog Post
Market Sentiment and AI Despite record-high stock indexes, market sentiment has turned bearish. This could be a bullish signal from a contrarian perspective, especially with better-than-expected Q4 2024 earnings results and positive news on AI capital spending. The Citibank Economic Surprise Index is back in positive territory, and key economic indicators are showing strength. However, AI also presents challenges. OpenAI's ChatGPT Pro highlights the high costs associated with AI computing resources. For AI to justify significant investments and replace human workers, it needs to become more cost-effective. Chipmaker Nvidia is working on advanced AI processors to address this issue. Trump Administration and Economic Policies The stock market reacted positively to President Trump's delay in raising tariffs. However, his proposed tariff policies and other economic decisions could impact inflation and market stability. The 10-year Treasury yield is being closely watched as a barome...