Dell Sparked Tech Selloff & Reinforced AI Worries
Yesterday marked the last big earnings day for a while, and let’s say it wasn’t exactly a bullish signal. After Nvidia, Dell became the second heavyweight this week to deliver a solid quarter but paired it with a cautious outlook. Is the AI boom beginning to lose momentum? Maybe – but let’s not get carried away.
The Nasdaq slipped just over 1% ahead of next week’s Labor Day break. On its own, that doesn’t mean much. Still, some investors are beginning to worry about the uncertainty hinted at in recent earnings calls, especially around AI demand. Personally, I think apart from AI enthusiasm there isn’t much holding this rally up. If that cools, the market could face a bloody selloff.
That said, I welcome dips in tech names riding long-term secular trends. Those are the moments to buy aggressively. This earnings cycle alone probably won’t trigger a deep pullback, but it might be a preview of what’s coming in the months ahead.
Fed Governor Cook Sues President Trump
Now to something actually troubling rather than a potential “buy-the-dip” moment: a Fed official going to court against the U.S. President to fight for her job.
Governor Cook openly criticized Trump’s tariff regime. As we know, the self-proclaimed “stable genius” in the Oval Office doesn’t take well to dissent or expert opinion. The difference this time: instead of fading quietly into the background – like the official who reported weak labor data and got sacked for it – Cook is standing her ground.
This lawsuit is alarming. The Fed’s independence is a cornerstone of the U.S. economy. If politicians can simply fire or intimidate central bankers for policy disagreements, what separates us from the Wild West? If this trend continues, the credibility of both the Fed and U.S. institutions could be at real risk.
