More than two years after ChatGPT's debut, generative AI continues to make astounding advances at breakneck speed. The technology that powers all-purpose chatbots is transforming many aspects of life with its ability to spit out high-quality text, images or video, or carry out complex tasks.
Semi-conductor as a forefront, is one of the sectors which was hit heavily by tariffs implemented by President Trump. The reciprocal tariffs sparked massive sell-off around global financial markets, Nvidia and Apple led the sell-off as the bellwether of AI and semi-conductor, the market cap of Nvidia wiped out more than $265 billion.
Federal Reserve Governor Christopher Waller recently acknowledged that interest rate cuts are likely this year, but the central bank can take its time relaxing monetary policy.
Higher interest rates, a potential recession and persistently high prices made consumers substantially less confident about the current state of the economy as well as where things are heading.There are factors, however, that have cast doubt on the Fed’s credibility.
What’s happening in resent weeks has been confusing the market. Fueled by the Fed’s pivot in policy, the markets climbed the wall of worry and set new highs; Then the Fed’s minute dampened the market enthusiasm, resulting in seven straight sessions sell-off. After several days digestion, the rally is back on its track. So where are the markets headed for after new highs? Will the Fed fall into a rut in terms of monetary policy? What are the consequences of that?
