'Increasingly, the market is running on one engine: a familiar cast of tech companies that are building out (and benefiting from) the AI revolution.Nvidia, whose grip as the dominant supplier of chips that power AI has made it the world’s most-valuable company, has jumped 4.5% in the past week to a new all-time high.Meta Platformsis up 24% since Aug. 13, when the S&P 500 had its previous high.
Just about everything else is going down. Shares of healthcare firms, banks and consumer staple companies are declining. So are small-cap stocks. And blue chips, like the Dow industrials.
The yawning gap between the market’s biggest winners and other stocks is growing larger. Less than half of the stocks in the S&P 500 closed above their 200-day moving average on Tuesday, Dow Jones Market Data shows, a figure that has steadily declined since August...
“Higher interest rates and inflation are taking a toll on other stocks in the S&P 500,” Russo said. “It’s only the fortress like balance sheets at the large-cap end of the spectrum that are propping the market up.”
A financialised US economy cannot compete with China on manufactured goods and commodities- it is placing all the chips on winning the AI race.
That and using its military to prop up the petrodollar and its hegemony over global trade payments, even though China now dominates global trade.
It's working. The IRGC lost. They have no navy. They have no air force. Give us your oil or we bomb the desalination plants.
Lets see how the mid terms go first . . .
TACO Trump blasted back to the stone ages.
That's not how the system works. The US military isn't about to surrender to communism because of a midterm election.
Another day, another time, you link an article that does not talk about the trade war and the singular mention of China was one sentence on Chinese models.
Thats the extent of China being mentioned.... another 2 minutes wasted reading an article and looking at your post.
Do you understand the meaning of context?
Americas big bet on AI reflects its inability to compete with China on almost everything else.
In terms of AI America still has an advantage in terms of microprocessor chip production which it enjoys via control over Taiwan and European lithograph fabricators, but China is catching up on that front as Elon Musk admitted in a recent interview with The Economist.
At the same time China already enjoys a massive advantage in terms of raw electricity power generation capacity and projected increases.
Americas petrodollar based global economic and military dominance is being eroded by Chinas success in dominating manufacturing and commodity markets.
America is lashing out militarily seeking to cut off Chinas fossil fuel supplies and microchips.
China has responded by cutting off supply of refined rare earths essential to US military.
America is also trashing the international rules based order it constructed in the first place as it now doesn't provide enough advantage to maintain dominance.
Israel is demanding and getting direct and indirect support for its expansionary land grabbing Greater Israel Project as it sees US hegemony in decline and seeks to establish itself a regional hegemony against China.
China will not be owned by Zionist bankers as USA has been since 1913.
This is the reality you struggle to deal with.