The broader US indices are erasing their earlier declines. The Dow industrial average is now trading up 206 points or 0.40%. The S&P index is up 16.45 points or 0.22%. The NASDAQ index is trading unchanged.
At session lows today:
- Dow industrial average was down -292.02 points
- S&P index was a down -49.72 points
- NASDAQ index was down 259.26 point
From a technical perspective, the NASDAQ index is still struggling with this 200 hour moving average. The level comes in at 26,214.88. The high prices today reached 26,238.06 above that level but the price has since dipped back below the key moving average.
In contrast, the S&P index moved back above its 200 hour moving average during yesterday’s trade and remains above it at 746A .56. If the price can stay above the moving average the buyers are more in control. Meanwhile for the Dow industrial average, a closed a new record high yesterday and any gain today would be another new all-time high.
Meta is building up cloud business with the excess AI compute which they want to sell at a profit. Shares of matter are trading up 11.4%.
Shares of some of the chip companies are lower on the news. The question is did Meta purposely overbuild in anticipation of a shortage. That would give them the ability to sell their “excess” as a business/new profit center. Or did they overbuild and that is something others will now face (i.e we have reached the peak in AI chip need). Or does Meta selling their services simply undermine other looking to do the same.
It does not seem fully apparent at the moment.
Source: Original Article
