Author: starbpo

Parallels to the top of the internet bubble are too obvious to ignore. The recent drop in Nvidia Corp. stock price is probably the start of something much worse for the company and other semiconductor stocks. That’s what new research about market bubbles and how they eventually pop means. The study says it’s “nearly certain” that the market value of Nvidia NVDA, +6.76% and the semiconductor industry as a whole will drop by 40% at some point in the next two years. The research that led to this prediction was done by Robin Greenwood, Andrei Shleifer, and Yang You at…

After falling for three days, Nvidia Corp. shares entered correction territory on Monday. However, that wasn’t enough to scare off small investors. On June 18, Nvidia NVDA, +6.76% hit a new high of $135.58. Then, in just three trading days, it fell almost 13%. Even though the stock fell, it is still up almost 140% so far this year. As a result, many small investors used the drop as a chance to buy Nvidia at a lower price, which paid off as the stock rose 6.8% on Tuesday. Steve Sosnick, chief strategist at Interactive Brokers, says that most investors who…

Waymo’s robot taxi service in San Francisco is now open to everyone. The self-driving car company Waymo, which is a part of Alphabet Inc. GOOGL, +2.68% GOOG, +2.65%, said on Tuesday that anyone in San Francisco with the Waymo app and a credit card could get rides at any time, day or night. Before, the service was only open to people who were approved from a waiting list. In a blog post, Waymo said that almost 300,000 people had joined the waiting list and that it was giving out “tens of thousands” of trips every week for things like work,…

General Motors Co.’s troubled self-driving unit, Cruise, said late Tuesday that it has hired a veteran executive from Amazon.com Inc. and Microsoft Corp. as its new CEO. This comes seven months after the board fired the previous CEO and co-founder because of a string of accidents and a fleet grounding. Cruise said that Marc Whitten would be its CEO starting July 16. Cruise said, “Marc is a proven leader with decades of experience on the front lines of technology changes.” Whitten helped create Microsoft’s Xbox and Xbox Live as an engineer. At Amazon AMZN, +0.41%, he oversaw a variety of…

Volkswagen AG said it would invest $1 billion in Rivian Automotive Inc. after hours on Tuesday. The company makes electric vehicles. Volkswagen AG also said it would invest $4 billion more if their planned joint venture to make electric vehicles works. The investment and the vote of confidence it shows for Rivian seemed to calm investors’ worries about the EV maker’s cash burn, at least for now. The German car company Volkswagen VOW, +0.09% VWAPY, +0.71% will become a shareholder in Rivian RIVN, +8.63% through a $1 billion convertible note, as long as the government gives its approval, which won’t…

Tuesday was a big bounce back for Nvidia Corp. shares after a three-session drop that put them in correction territory. The stock made a big comeback on Tuesday, rising 6.8% to finish the day as the second-best performer in the S&P 500 SPX. After dropping 12.9% in the three sessions before that, Nvidia shares NVDA, +6.76% went up again. Dow Jones Market Data says this was the first time since March 9, 2021 that the stock went up 6% or more after going down 6% or more the previous day. Morgan Stanley said again in a report released Tuesday that…

Shares of Nvidia Corp. have recently dropped quickly and are now in the “correction” range. That was less than a week ago that Nvidia’s stock NVDA, -6.68% hit an all-time high. That made the company the biggest in the U.S. by market capitalization for one day. The stock has been going down since then—three sessions in a row—and it’s now almost 13% below its all-time high. Most of the time, a correction means a drop of 10% to 20% from the high point of a bull market. On Monday, Nvidia stock dropped 6.7% to $118.11. During those three days, the…

On Monday, former Treasury Secretary Larry Summers criticized the Federal Reserve’s plan to fight inflation. He also claimed credit for figuring out last year that markets and policymakers were exaggerating the chances of several interest rate cuts in 2024. Summers said at a Council on Foreign Relations event in Washington that recent data showing a slowdown in inflation are more or less a mirage because prices have returned to normal after the pandemic. He also said that markets shouldn’t expect this trend to continue. “Given how big our financial problems are…” Summers said, “I think there’s a bit of excessive…

Yardeni Research says that two parts of the S&P 500 index have reached levels seen before the tech bubble burst in early 2000, which suggests that the U.S. stock market may be in a melt-up. In an email on Monday, Yardeni said that the IT and communication services sectors now make up “a whopping 41.6%” of the market value of the S&P 500. The chart below shows that that’s how high they got right before the tech bubble burst in early 2000. This year, the U.S. stock market has been going up thanks to stocks in what are called “Big…

Washington, D.C. The Biden administration is announcing new steps to make it easier for people to find affordable housing. This is because the cost of living has gone up a lot since the pandemic, thanks to high interest rates and still-high prices on groceries and other necessities. On Monday, when she goes to Minneapolis, Treasury Secretary Janet Yellen will talk about the new investments. The investments include giving $100 million over the next three years through a new fund to help finance affordable housing, making it easier for the Federal Financing Bank to finance affordable housing, and other steps. The…