Shesa's Investment Blog

Last week was a short trading week for the stock market. On Tuesday and Wednesday market was stable but it saw an U turn on Thursday and Friday. The Dow was down about -2.7% , S&P -2.2% and Nasdaq: -2.5% . The question is why was this U turn in the stock market? Ok, here is what happened. Consumer Sentiment Index (University of Michigan): The index dropped to 64.7 in February from 71.7 in January, a decline of nearly 10% vs. 67.8 expected, hitting a 15-month low. The sharp drop reflected growing consumer pessimism, partly due to fears over tariffs and inflation. Inflation Expectations (University of Michigan) One-Year Ahead: Went up to 4.3% in February from 3.3% in January, the highest since November 2023. The Five-Year Ahead inflation expectations went up to 3.5% from 3.2%, the highest since 1995. These jumps signaled heightened consumer concern about rising prices, potentially exacerbated by tariff threats. S&P Global Flash U.S. Composite PMI Output Index  Dropped to ...

U.S. Stock Market Update   The U.S. stock market is entered 2025 with cautious optimism after a robust performance in 2024. But in contrary, U.S stock market did quite well in January, S&P 500 was up 3.94% , Dow Jones soared 5.5% and Nasdaq was up 3.14% . On Monday, January 27 AI stocks had their worst day in recent memory after a new Chinese AI model after DeepSeek (a Chinese version of ChatGPT) said  that its model is as good but cost 95% less to develo p. This news sparked fears that companies may not need to spend as much on creating new AI models as previously thought. Nvidia lost $589 billion on a single day biggest loss by any stock on a single day in the stock market history. NVDA and AVGO combined lost $800B on a single day. More on this later in my blog. There has been a lot of geopolitical drama in the last few weeks, threats of a trade war, to the DeepSeek drama, DOGE shutting down some departments and bringing potential corruptions to the forefront and sa...