One 0.5% Red Day ≠ Panic

Another day, another AI headline that moved the market.

The S&P500 was -.40% and the NASDAQ was -.55% yet it felt much worse if you looked on social media.

I haven’t seen this much noise on my feed in quite some time. QQQ was down 0.62% but if you read your feed it sounded like armageddon. Why? The Information (which constantly has bad or exaggerated information) dropped a report on Oracle that stirred things up.

The article suggested Oracle’s AI cloud services are operating on very thin margins or even losing money. That was enough to spook investors because if Oracle of all companies is struggling to turn a profit on AI infrastructure, it raises a big question:

How profitable is AI for those building the backbone of it?

Just so you’re aware a while back, The Information published a negative article regarding Nvidia Blackwell chips that was later proven to be false. It wouldn’t surprise me if this ended up being false as well. A few moments ago, Jensen disputed the claim and said Oracle is doing well and will continue to do very well. I will take Jensen at his word vs. “The disInformation.”

Now for the market, my positions, my market gauge watchlists, and a new trade I put on today.