Market News Intelligence

1. Summary U.S. equities entered the day on a defensive tone as the AI‑driven rally led by Nvidia stalled, pulling a wide swath of semiconductor, hardware and cloud‑related names lower. The sell‑off was offset by a sharp rally in Walmart, which is touting a new tech‑centric strategy and a potential listing on a fresh exchange. Broad‑market indices slipped modestly, while investors digested mixed macro cues – softer inflation expectations in Japan, lingering rate‑cut bets, and a resilient jobs market that kept the Fed’s policy outlook unchanged.

2. Key Themes

• AI Volatility & Nvidia Reversal – Nvidia’s post‑earnings pullback sparked a sector‑wide retreat, dragging AMD, Micron, Seagate, Western Digital and other tech stocks into the red.
• Retail Divergence – Walmart’s tech‑focused expansion lifted its share sharply, whereas peers such as Carvana, Chegg, and several consumer‑discretionary names posted declines.
• Defensive Rotation – Utilities, value‑oriented stocks and high‑margin, low‑volatility names attracted attention as investors seek safety amid AI‑bubble concerns; Ray Dalio warned against panic‑selling.
• Macro Backdrop – Yen weakness, steady U.S. jobs data, and a modest easing of rate‑cut expectations kept bond yields elevated, while oil slipped on diplomatic hopes for a Russia‑Ukraine peace push.

3. Conclusion The market is likely to remain range‑bound in the near term, with upside limited until AI sentiment stabilises and macro risks ease.