In Short:
– Stocks fell due to concerns over AI valuations; S&P 500 down 1.2%, Nasdaq down 1.9%.
– Palantir shares dropped 9% despite strong performance, raising questions about sustainability of high valuations.
Stocks fell on Tuesday as investor concerns regarding artificial intelligence valuations impacted major indices.
The S&P 500 declined by 1.2%, and the Nasdaq Composite dropped by 1.9%, while the Dow Jones Industrial Average lost 304 points, equating to a 0.6% decrease.Palantir shares dropped 9%, despite the company’s strong third-quarter performance and positive forecasts attributed to its AI sector growth. The stock has surged over 150% this year, yet trades at over 200 times its forward earnings, leading investors to question whether such valuations can be sustained.
Other tech stocks also faced declines, including Oracle and AMD, which saw drops of 4% and more than 3%, respectively.
Gains in AI stocks have inflated the S&P 500’s price-earnings ratio above 23, raising concerns about stock valuations. Ameriprise market strategist Anthony Saglimbene highlighted potential risks, stating that investors are questioning if future profit growth will support high capital expenditures.
Market Outlook
Comments from executives at Goldman Sachs and Morgan Stanley further added to market worries.
Both firms predicted potential market pullbacks, with drawdowns of 10% to 20% possible within the next two years. Saglimbene noted a narrow market breadth in recent months, suggesting limited alternatives if a downturn occurs in the tech sector.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
Tensions rise in Minneapolis after fatal shooting by ICE agent, sparking protests and unrest as investigations unfold.
Tensions in Minneapolis have escalated following the fatal shooting of a mother by a U.S. Immigration agent. The incident has sparked outrage across the city, with residents taking to the streets to demand justice. Authorities are struggling to contain the unrest as public anger continues to mount.
State and federal officials are now at odds over the investigation. The Minnesota Bureau of Criminal Apprehension has stepped back after the FBI assumed control, while the state attorney general has warned that state-level charges could still be pursued independently. The political divide adds another layer of complexity to an already volatile situation.
In response to the protests, schools in Minneapolis have closed and the National Guard has been activated to maintain order. Citizens are being urged to stay safe as tensions remain high and the city braces for further demonstrations.
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Iran faces widespread protests as currency collapse and soaring inflation strain household budgets, fueling public anger.
Protests are spreading across Iran after the country’s currency suffered a dramatic collapse, pushing inflation to more than 42 percent in December. Rising prices are squeezing household budgets, with basic goods becoming increasingly unaffordable for millions of Iranians.
What began as frustration over the cost of living has quickly grown into widespread public anger, as families struggle to keep up with soaring expenses amid a weakening rial and economic uncertainty.
These economic pressures have become the catalyst for demonstrations across major cities, marking one of the most serious waves of unrest linked directly to inflation in recent years.
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PM announces royal commission to address anti-Semitism and social cohesion following pressure from various communities and leaders
In Short:
– Anthony Albanese has announced a royal commission into anti-Semitism and social cohesion, led by Virginia Bell.
– The inquiry aims to foster unity in Australia amid rising tensions and concerns from various community groups.
Anthony Albanese has initiated a commonwealth royal commission into anti-Semitism and social cohesion following mounting pressure.
The inquiry, announced in Canberra, will be led by former High Court justice Virginia Bell, despite opposition from some Jewish groups.The Prime Minister stated the need for a royal commission was essential for promoting unity within Australia, particularly after engaging with families of Bondi attack victims and the Jewish community.
He confirmed discussions with NSW Premier Chris Minns and expects the single commission to run over the next 12 months, with further comments from Mr Minns anticipated soon.
The prime minister has been asked if he’s still worried a royal commission would fuel antisemitism.Anthony Albanese insists he doesn’t want the inquiry to weaken social cohesion.
“The royal commissioner will bear in mind how hearings are conducted in the processes of their conduct,” Albanese says.
“We have been working on this for weeks. I have been engaged with the community.”
The prime minister was questioned about whether it was a mistake to reject calls for a royal commission into antisemitism.Following the Bondi terror attack, the federal government faced pressure to establish such a commission.
Anthony Albanese stated that the government has implemented various measures within the 25 days following the attack.
“We have increased funding for security agencies. We have had daily briefings of the National Security Committee,” Albanese says.
“The Commonwealth have particular resources and one of the groups and individuals I’ve spoken to as well have been people outside of New South Wales,” he says.
Highly-respected former High Court judge Justice Virginia Margaret Bell is the PM’s pick to lead the royal commission.
Sustained advocacy
This decision comes after sustained advocacy from various groups, including victims’ families, former leaders, and prominent figures across sectors.
Over recent weeks, Albanese and his team had put forth several arguments against a royal commission, such as concerns over divisiveness and potential exposure of sensitive information.
Gamel Kheir from the Lebanese Muslim Association has suggested that a broader inquiry into all forms of “minority religion” discrimination is needed, expressing wariness within the Muslim community regarding the federal inquiry’s focus.
Broad Support
A significant number of community and cultural organisations back a royal commission addressing social tensions and discrimination related to the Israel-Gaza conflict.
In support of this sentiment, nearly 50 diaspora and faith groups released an open letter urging a thorough examination of rising anti-Semitism and related issues following the Bondi Beach terror attack.