🚀 Nvidia leads tech slide

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Market Overview
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Year To Date Performances:

1. Nvidia shares plunged 5% on Thursday despite a dominant fiscal fourth-quarter performance, as Wall Street’s focus shifts from "beat-and-raise" earnings toward the long-term sustainability of the AI infrastructure boom. Although the chip giant posted record revenue of $68.13 billion—a 73% year-over-year increase—and issued a blockbuster $78 billion first-quarter guidance that shattered even the most bullish estimates, investors are increasingly fixated on "monetization fatigue" among hyperscale customers who are depleting cash flows to fund massive capital expenditures. This "sell-the-news" reaction reflects a broader market anxiety that has recently wiped over $1 trillion from tech market caps, leaving traders wary of potential cashflow degradation and "quantum risk" even as Nvidia’s data center unit continues to account for over 90% of its total sales. With rivals like AMD also seeing sharp post-earnings declines despite strong growth, the semiconductor sector is currently grappling with a paradox where phenomenal financial results are being overshadowed by growing skepticism over how long the current pace of AI investment can realistically be maintained.

2. During his State of the Union address, President Trump claimed his administration's policies are "rapidly ending" high food costs, specifically citing significant price drops for beef, chicken, and eggs. However, federal data from the Bureau of Labor Statistics presents a more complicated reality: while egg prices have indeed plummeted 59% from their bird-flu-induced record highs in 2025, beef and chicken remain more expensive than when the President took office. Ground beef reached an all-time high of $6.75 per pound in January, driven by the smallest U.S. cattle inventory since 1951 and a post-pandemic surge in consumer demand. Agricultural economists note that these shifts are largely dictated by cyclical supply shocks and global demand rather than federal intervention, warning that the administration's push to increase beef imports could inadvertently discourage domestic herd growth and keep long-term prices elevated.

3. MP Materials has announced Northlake, Texas, as the site for its new $1.25 billion rare earth magnet manufacturing campus, a move that significantly accelerates the U.S. mission to decouple its defense and tech industries from Chinese supply chains. The facility, named "10X," will process raw materials from the company’s Mountain Pass mine in California to produce 7,000 metric tons of magnets annually, effectively meeting the current direct import needs of the United States. With all initial production for the first ten years committed to the Department of Defense under a strategic $400 million partnership, the plant is a cornerstone of the Trump administration's "Project Vault" initiative to secure minerals essential for everything from fighter jets to data centers. Set to begin production in 2028 and create 1,500 jobs, 10X represents a massive expansion beyond the company’s existing Fort Worth site and serves as a critical buffer against the export controls recently weaponized by Beijing.

   Headlines

   1. Ebay announced it will lay off 800 workers.

   2. Congress is pushing to limit the export of advanced chips.