OIL COLLAPSES, AI BUBBLE FEARS EXPLODE: WALL STREET FACES A PERFECT STORM AS TRUMP’S MIDTERMS HANG IN THE BALANCE!
Fresh signals that Iran may be open to negotiations and a potential deal with the United States sent oil tumbling below $106 a barrel, offering some relief to inflation concerns. Yet the decline was not enough to lift the S&P 500 and Nasdaq, which fell on the first trading session of November following an already disappointing October.
The Nasdaq lost more than 5% last month as investors questioned whether the massive investments in artificial intelligence will ever generate sustainable returns. Oracle plunged nearly 9% after announcing a $20 billion stock-and-debt offering, fueling concerns that the AI infrastructure boom is becoming increasingly expensive to finance.
Apple added to the market gloom: despite posting record September-quarter revenue of $114.5 billion, up 12%, iPhone sales of $57.6 billion, a 17% increase, and earnings per share of $2.10, its shares fell more than 4% in premarket trading. The culprit? A projected holiday-quarter gross margin of just 45% to 46%, below the previous quarter’s 47.9%, as Apple faces what it calls an “unprecedented” surge in memory costs and rising cloud expenses tied to its revamped Siri. The AI bill is finally coming due.
$AAPLB $ORCLB
Fresh signals that Iran may be open to negotiations and a potential deal with the United States sent oil tumbling below $106 a barrel, offering some relief to inflation concerns. Yet the decline was not enough to lift the S&P 500 and Nasdaq, which fell on the first trading session of November following an already disappointing October.
The Nasdaq lost more than 5% last month as investors questioned whether the massive investments in artificial intelligence will ever generate sustainable returns. Oracle plunged nearly 9% after announcing a $20 billion stock-and-debt offering, fueling concerns that the AI infrastructure boom is becoming increasingly expensive to finance.
Apple added to the market gloom: despite posting record September-quarter revenue of $114.5 billion, up 12%, iPhone sales of $57.6 billion, a 17% increase, and earnings per share of $2.10, its shares fell more than 4% in premarket trading. The culprit? A projected holiday-quarter gross margin of just 45% to 46%, below the previous quarter’s 47.9%, as Apple faces what it calls an “unprecedented” surge in memory costs and rising cloud expenses tied to its revamped Siri. The AI bill is finally coming due.
$AAPLB $ORCLB
