Headlines are still focused on the Debt Ceiling.
Futures are down pre-market even thought AI is the rage. But I do think the AI explosion is beginning to subside and some profit taking is beginning to happen. For instance Tench Coxe, #NVDA 3rd largest shareholder reported the sale of 100k of shares worth $37.9m on 5/26/2023. Presently he sits on the board of directors. Impeccable timing!
Big pump on C3.ai (AI) yesterday by 33%. Pre-market it down 6%. They report earnings on June 2, 2023. The indicators I watch are presenting a overbought situation.
Housing
Mortgage rates rose to 6.91% last week, the highest level since February. This increase in rates led to a decrease in mortgage demand, with applications to refinance and purchase homes both down from the previous week. The lack of homes on the market and the high cost of mortgages are making it difficult for potential homebuyers to afford a home. The direction of mortgage rates will depend on new economic data, with the next major release being the monthly employment report on Friday.
Conclusion
As we close out the month of May 2023, the rise of AI could be coming to a end for the summer months as Wall Street volume begins to slow. This could present some buying opportunities later in the summer.
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