MARKET WRAP

Stocks were broadly lower today as the S&P 500 fell from record highs.

The large-cap index was down 0.19%, while the Nasdaq closed slightly higher up 0.04% and the Russell 2000 was down 1.19%.

On the sector front, energy was the big loser, down nearly 2%. Utilities and Technology were the only sectors to close in the green.

CNBC notes that the major averages are trending positively this September, despite ongoing concerns about a slowing economy following the Federal Reserve's recent rate cut. This move has so far helped the S&P 500 outperform typical September trends, indicating resilience in the market.

MRKT MATRIX: September 25, 2024

Today’s Top Stories:

• Dow falls nearly 300 points to snap four-day win streak, S&P 500 retreats from record (CNBC)

• Morgan Stanley’s Jonas downgrades Ford and GM, citing China competition, problems with U.S. consumer (CNBC)

• Nvidia Stock Edges Up. New Report Puts Numbers to AI Chip Growth. (Barron’s)

• OpenAI Pitched White House on Unprecedented Data Center Buildout (Bloomberg)

• Meta unveils $299 Quest 3S VR headset, Orion AR glasses prototype (CNBC)

• US Mortgage Rates Fall Again, Triggering Big Wave of Refinancing (Bloomberg)

• Online Holiday Spending Projected to Rise 8.4%, Most Since 2021 (Bloomberg)

Today’s MRKT Call is Presented by SoFi

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Today’s Okay, Computer. is Presented by RBC and Current

Is the GenAI Glass Half Full Or Empty with Deirdre Bosa, Michael Dempsey & Jonathan Godwin

Dan Nathan is joined by Deirdre Bosa, host of CNBC's TechCheck, to discuss the latest in AI investments, including Google and Amazon's funding in Anthropic, and how these valuations are evolving. They also banter about a New York Times article scrutinizing the future impact of generative AI. The episode highlights the rapid revenue growth in companies like OpenAI and Anthropic, growing interest and skepticism towards AI from big players like Goldman Sachs, with insights from Jim Covello. The conversation touches on consumer applications of AI, such as the use of models from companies like OpenAI and Anthropic by platforms like Perplexity. Bosa explores the strategic moves by Microsoft to train its own AI models and the broader implications for the AI market.

After the break, Dan Nathan is joined by Michael Dempsey, managing partner at Compound VC, and Jonathan Godwin of Orbital Materials, discussing their innovative approach using AI for advanced materials and climate tech. The episode wraps with a look at potential overcapacity in AI infrastructure and shifting strategies in major tech firms.

Further Reading

• Will A.I. Be a Bust? A Wall Street Skeptic Rings the Alarm. (NYT)

• AI’s $600B Question (Sequoia Capital)

• Gen AI: too much spend, too little benefit? (Goldman Sachs)

• WhatsApp Dominates Meta AI Use (The Information)

• Microsoft AI Chief Suleyman Shuffles Unit Leadership, Pointing to Shift in Strategy (The Information)

• Why I Started Orbital Materials (Substack)

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