Nvidia (NVDA) stock continued its decline on Tuesday after falling more than 10% from its record closing price in November. Shares of the semiconductor giant fell nearly 3% in early trading, before rebounding from the session’s lows.
The move comes as investors debate what will happen to the U.S. economy in 2025, mirroring declines in all three major indexes and a respite.
“This bull market, which has been so dramatic since July, is starting to get a little fragile,” said James Demmert, chief investment officer at Main Street Research. Yahoo Finance’s Morning Brief.
“So heading into 2025, I think investors need to start emotionally preparing for a normal 8% to 12% correction in the market,” he warned.
Demmert said the Fed is probably already at “neutral interest rates” and won’t need to cut rates significantly going forward, also pointing to the breadth of the market in the new year after a surge in mega-big tech stocks. KK.
According to Bank of America’s latest fund manager survey, 57% of investors surveyed said being long on the Magnificent 7 is considered the most crowded trade.
“The market is at magnitude 7,” Demmert said. “While these stocks will do well in 2025, others will do well or even better,” as more attractive valuations and AI-driven use cases are expected to boost earnings. It is said that
