Keep pulling the thread on Producer Price Index.
The Nasdaq is trading at a forward price-to-earnings multiple of approximately 35 to 37 times, significantly higher than its historical average in the mid-20s.
Weiss predicts that military hostilities will resume in Iran.
Jim Chanos warns investors against paying high multiples for what may be cyclical earnings from the AI capital expenditure boom, rather than sustainable, secular earnings.
NVIDIA's data center revenue from China has fallen to effectively zero, a significant drop from 13% the previous year, according to a statement by CEO Jensen Huang at a Citadel conference.
A Wells Fargo analysis suggests that a closure of the Strait of Hormuz would fuel the AI investment 'bubble' by limiting viable investment alternatives.
The Producer Price Index (PPI) report indicated stronger than expected inflation.
The market narrative driven by strong corporate earnings and artificial intelligence is currently overpowering concerns about inflation and geopolitical risks.
Weiss predicts a resumption of hostilities involving Iran would cause a market drawdown but would not completely derail the AI investment theme.
Liz predicts that the current rapid rate of growth in both earnings and capital expenditures for technology companies will eventually have to slow down.
The technology sector recently experienced 50% earnings growth.
According to a Bank of America 'flow show' report, clients were recently large buyers of technology stocks, marking the largest inflow since mid-March.
NVIDIA CEO Jensen Huang is currently visiting China.