Skip to main content

Featured

Markets Digest Hot U.S. Inflation as Iran Tensions Keep Oil Elevated

Publication:  moneysavings.ca / Canadian Money Brief  Date:  Tuesday, May 13, 2026 The TSX opens cautiously Wednesday after hotter-than-expected U.S. CPI data rattled Wall Street on Tuesday, while Strait of Hormuz disruptions continue to lift energy stocks and pressure the loonie toward 1.35 against the greenback. TSX ~34,291 S&P 500 7,400.96 ▼0.16% WTI Oil ~$102/bbl ▲ Gold ~$4,721 USD/oz ▼ USD/CAD ~1.35 US CPI Apr 3.8% ▲ (est. 3.7%) Market Overview Canadian investors are starting Wednesday on a cautious note following a mixed session south of the border. U.S. equities dipped Tuesday after April's consumer price index came in at 3.8% — a touch above the 3.7% consensus forecast and the highest reading since May 2023 — while the core rate held at 2.8%, also above expectations. The data has effectively closed the door on any Federal Reserve rate cuts in 2026, with traders now pricing in a roughly 70% chance of a rate hike by April 2027. For Canadians, the ripple effects...
Post a Comment
Read more

article

Labels

Nasdaq Plummets as Nvidia Sinks 17% Amid AI Market Turmoil

                                              

The stock market experienced significant turbulence today, with the Nasdaq Composite Index plunging by 3.07%. This sharp decline was primarily driven by Nvidia's stock, which saw a staggering 17% drop. The sell-off was triggered by growing concerns over the impact of China's DeepSeek AI model on the profitability of leading AI companies.

DeepSeek's AI model, which reportedly uses cheaper chips and less data while delivering comparable performance to top models, has caused investors to reassess their bets on AI-driven growth. This has led to a widespread sell-off in tech stocks, with companies like ASML, Broadcom, and Micron Technology also experiencing significant losses.

In contrast, the  Dow Jones Industrial Average managed to stage a modest comeback, buoyed by increased demand for defensive stocks. Investors flocked to safer assets, such as Johnson & Johnson, United Healthcare, and Procter & Gamble, helping the index to recover some of its earlier losses.

The market's reaction underscores the growing uncertainty surrounding the future of AI investments and the potential disruption posed by innovative and cost-effective alternatives like DeepSeek. As the tech sector grapples with these challenges, investors are closely watching upcoming earnings reports from major companies like Apple, Tesla, Meta, and Microsoft for further insights into the industry's outlook.





Labels:

Comments

Post a Comment