Wednesday, January 28, 2026

Big Tech's Split Verdict: Narrative Trumps Numbers in After-Hours Chaos

After a day session that was brought to a standstill by a hawkish Federal Reserve, the post-market has erupted with a chaotic and deeply divergent verdict on Big Tech earnings. The reports reveal a market with sky-high expectations for the AI trade, where compelling narratives are being rewarded more than immediate results.

The most stunning example is Tesla (TSLA), which is rallying in late trading despite a disastrous report that showed profits plunging. Investors are completely ignoring the grim state of its core auto business. Instead, they are buying into CEO Elon Musk's aggressive pivot to the future, fueled by plans for a $20 billion capital spending spree focused on robotics and AI, including a $2 billion investment in his xAI startup.

In stark contrast, Microsoft (MSFT) is being punished, slipping after-hours despite beating headline profit and revenue estimates. For a market priced for perfection, the growth in its crucial Azure cloud unit was not explosive enough to justify the massive AI-related spending, leading investors to question the immediate return on investment. This dynamic is amplified by news that Microsoft, along with Nvidia (NVDA) and Amazon (AMZN), are in talks for a colossal $60 billion investment in OpenAI, underscoring the immense scale of the capital being deployed across the sector.

Meta Soars, Microsoft Sinks in Post-Earnings Split

The after-hours session has devolved into a chaotic and divergent trade as investors deliver a wildly mixed verdict on Big Tech earnings. The reports reveal a market with sky-high expectations for the AI trade, ruthlessly punishing perceived stumbles while rewarding strong execution and compelling narratives. This follows a regular session where markets closed flat, as a hawkish message from the Federal Reserve completely erased a powerful morning rally.

Meta Platforms (META) has emerged as the clear winner, surging in late trading after crushing earnings estimates and providing strong forward guidance. Investors are giving the company a green light for its heavy AI spending, viewing it as a justified investment. In stark contrast, Microsoft (MSFT) is slipping despite beating headline numbers. The growth in its critical Azure cloud unit failed to decisively beat lofty expectations, signaling that the market is questioning the immediate return on its massive AI capital expenditures.

Elsewhere, the theme of corporate discipline continues. Amazon (AMZN) is in focus with reports it's scrapping its 'Fresh' grocery concept to double down on its battle with Walmart, reinforcing the capital reallocation narrative that drove its earlier layoff news. Meanwhile, a major new headwind has emerged for health insurers like UnitedHealth (UNH) and Humana (HUM), as reports detail a potential regulatory crackdown on Medicare Advantage overpayments, creating a new pocket of risk for a completely different sector.

Tech Earnings Deliver Split Verdict: Meta Soars, Microsoft Punished

The post-market session has descended into a chaotic, bifurcated trade as investors deliver a wildly mixed verdict on Big Tech earnings. The reports reveal a market with sky-high expectations for the AI trade, ruthlessly punishing perceived stumbles while rewarding strong execution and compelling narratives.

Meta Platforms (META) is the clear winner, surging in late trading after crushing earnings and revenue estimates. Crucially, investors are giving the company a green light for its heavy AI spending, as strong guidance and a robust core advertising business provide confidence that the investments will pay off.

In stark contrast, Microsoft (MSFT) is falling despite beating headline numbers. Investors are punishing the stock as the growth in its critical Azure cloud unit failed to decisively beat lofty expectations. The reaction signals that the market is questioning the immediate return on Microsoft's massive AI-related capital expenditures, proving that in this environment, a simple beat is not enough.

The most paradoxical reaction is in Tesla (TSLA). The stock is moving higher despite a disastrous report that showed profits plunging 46%. Investors are completely ignoring the grim state of the EV business and are instead buying into CEO Elon Musk's narrative pivot toward robotics and AI, a testament to the power of a long-term story over current fundamentals.

Tesla Soars on AI Pivot Despite Profit Plunge; Microsoft Falters

The post-market session has erupted into a chaotic, divergent trade following a deluge of Big Tech earnings. The reports reveal a market that is rewarding narrative over near-term results while punishing anything less than perfection. Tesla (TSLA) is the prime example, surging in late trading despite reporting a staggering 46% plunge in profits and announcing the end of its Model S and X car lines. Investors are completely ignoring the grim fundamentals and instead buying into CEO Elon Musk's narrative pivot towards robotics and a planned expansion into robotaxis.

In stark contrast, Microsoft (MSFT) is slipping after-hours. Despite delivering a strong earnings beat, the growth in its crucial Azure cloud division merely met, rather than decisively beat, Wall Street's sky-high expectations. This reaction signals that in the current environment, even massive AI spending and solid growth are not enough if perfection isn't achieved.

Meanwhile, the underlying AI hardware boom story that powered the market's morning rally was further validated. Samsung (SSNLF) reported a tripling of its quarterly profit, directly crediting the voracious global demand for AI memory chips. This confirms the trend seen earlier in the day from equipment maker ASML, proving the capital spending cycle on AI infrastructure is very real, even as the rewards for software and platform players are being more heavily scrutinized.

Tech Titans Diverge After-Hours: Meta Surges, Microsoft Sinks

The post-market session is delivering a chaotic and conflicting verdict on Big Tech. While the regular session ended flat, neutralized by a hawkish Fed, earnings reports are now driving wild swings. Meta Platforms (META) is surging after delivering a strong report that has investors overlooking the continued cash burn in its Reality Labs division.

In contrast, Microsoft (MSFT) is sinking in late trading. Despite beating headline revenue and profit estimates, the report was not perfect enough for a market priced for AI dominance. Concerns over higher-than-expected capital spending and Azure growth that merely met lofty expectations are weighing on the stock.

Perhaps the most dramatic story is Tesla (TSLA), which is rallying despite a disastrous report showing a 61% plunge in quarterly profits and its first-ever annual revenue decline. CEO Elon Musk has successfully pivoted the narrative away from weak EV sales by announcing the end of Model S and X production to make way for Optimus robots and a planned $2 billion investment in his xAI startup. Investors are buying the long-term AI story, not the grim current reality.

This theme of high expectations is also hitting the software sector, with ServiceNow (NOW) falling despite a positive forecast, as the bar for AI-driven growth appears to be set at an exceptionally high level.

Big Tech Earnings Deliver a Split Verdict in After-Hours Chaos

After a day session that was put to sleep by a hawkish Federal Reserve, the real market action has ignited after the bell with a chaotic and divergent slate of Big Tech earnings. The reports are painting a complex picture of the AI trade, revealing that not all titans are being rewarded equally.

Microsoft (MSFT) is slipping in late trading despite beating headline profit and revenue estimates. The culprit? The company's all-important Azure cloud unit saw growth that merely met, rather than decisively beat, Wall Street's sky-high expectations. In a market priced for AI perfection, a stellar report wasn't enough, leaving investors to question the immediate payoff from the company's colossal capital expenditures.

In stark contrast, Tesla (TSLA) is rallying despite posting a disastrous 46% plunge in annual profit and falling revenue. The stock is being driven higher by a classic narrative pivot from CEO Elon Musk, who is shifting focus from the flailing EV business to the future of AI and robotics, punctuated by a newly announced $2 billion investment in his xAI startup. Investors are choosing to buy the long-term story over the dismal current fundamentals.

Elsewhere, the results were cleaner but still mixed. IBM (IBM) surged over 8% after a strong report showed its AI book of business is accelerating. However, fellow software firm ServiceNow (NOW) fell despite a beat, another victim of elevated expectations.

Microsoft Slips, Tesla Rallies on Wildly Mixed Tech Earnings

The real market action began after the bell, as a deluge of Big Tech earnings created a chaotic and divergent picture for the sector. The reports followed a session where markets closed flat, with a hawkish message from the Federal Reserve completely neutralizing a powerful morning rally fueled by the AI hardware boom.

Microsoft (MSFT) is slipping in after-hours trading despite beating headline revenue and profit estimates. The culprit is the company's crucial Azure cloud division, which saw its growth rate only marginally top lofty expectations. In a market priced for AI perfection, a simple beat was not enough, leading investors to question the immediate payoff from the company's massive AI spending.

Conversely, Tesla (TSLA) is trading higher despite a messy report that included a revenue miss and a steep 46% plunge in annual profit. The stock's resilience is being driven by a classic Elon Musk narrative pivot: the company announced it will invest $2 billion in Musk's xAI startup, shifting focus away from current EV production challenges and back toward its long-term AI ambitions.

Elsewhere, the results were clearer. Software firms ServiceNow (NOW) and IBM are both surging after delivering strong results and upbeat guidance driven by AI-related demand. This contrasts sharply with Meta Platforms (META), which revealed its Reality Labs division burned through another $6 billion in the fourth quarter, highlighting the staggering cost of its metaverse venture.

Stocks Close Unchanged as Fed Wipes Out AI Rally

The market finished a volatile session in a dead heat, with the S&P 500 closing flat after a hawkish pause from the Federal Reserve completely erased a powerful, tech-driven morning rally. The Fed held rates steady as expected, but Chair Jerome Powell's commentary signaled the central bank is in no rush to cut rates, effectively pouring cold water on the day's early enthusiasm.

The session began on a very different note, with a surge in semiconductor stocks pushing the S&P 500 to new highs. The optimism was fueled by the ongoing AI infrastructure spending narrative that has dominated recent trading. However, the gains proved fleeting as traders sold into the rally ahead of the Fed's 2 PM announcement.

With the Fed's decision now in the rearview mirror, investor focus immediately pivots to a critical slate of after-hours earnings from tech titans including Microsoft (MSFT), Meta (META), and Tesla (TSLA), which will set the tone for tomorrow's session.

Markets Stuck in Neutral as Traders Dissect Fed Comments

The S&P 500 is trading flat, completely erasing a strong morning rally as investors digest the Federal Reserve's latest policy decision and ongoing press conference with Chair Jerome Powell. While the Fed held interest rates steady as widely expected, the accompanying statement included a slightly more hawkish tone, dashing hopes for imminent rate cuts and putting a damper on the session's earlier optimism.

The market's indecisive price action reflects the tension between the morning's powerful AI-driven tech rally and the afternoon's dose of macro reality from the Fed. All attention is now fixed on Powell's commentary, with traders parsing every word for clues on the central bank's inflation outlook and the conditions required before any policy easing can be considered. The lack of a clear dovish signal has effectively neutralized the bullish sentiment for now.

Beneath the flat index level, there are pockets of concern. Credit markets are flashing a warning sign around Oracle (ORCL), where credit default swaps have surged to levels not seen since the pandemic, signaling growing unease over the company's debt load. This suggests that while the AI narrative is strong, investors are becoming more discerning about the financial health of the companies involved.

Fed Decision Hits Wires; Markets Brace for Powell

The Federal Reserve's latest policy decision has just been released, and the market's initial reaction is a collective holding of its breath. The S&P 500 remains locked in a tight, flat trading range, having completely erased a strong tech-led rally from earlier in the session. This paralysis underscores that the initial statement is only half the story; investors are now laser-focused on the upcoming press conference with Chair Jerome Powell.

The market's current state of suspended animation follows a day of powerful crosscurrents. The morning session was dominated by the bullish AI infrastructure narrative, fueled by positive news flow around chip giants like Nvidia (NVDA) and Broadcom (AVGO). However, that optimism was steadily countered by a growing theme of corporate austerity, highlighted by significant layoff announcements from Amazon (AMZN).

With the initial decision now public, all attention shifts to Powell's commentary. Traders will be dissecting every word for clues on the Fed's inflation outlook and, most importantly, the potential timing of future rate cuts. His tone will almost certainly set the market's direction for the remainder of the session and the coming weeks.

Markets Hold Breath Ahead of Fed Decision

The market is locked in a tight trading range, completely erasing the morning's tech-fueled rally to trade flat on the day. This price action reflects a classic pre-event holding pattern, as investors are unwilling to take on new risk just hours before the Federal Reserve's highly anticipated interest rate decision and subsequent press conference with Chair Jerome Powell.

The underlying narrative remains a battle of powerful crosscurrents. The AI investment thesis continues to gather steam, with fresh reports highlighting Broadcom's (AVGO) expected dominance in the custom chip market and Nvidia (NVDA) gaining approval for H200 chip sales in China. This provides a strong fundamental tailwind for the semiconductor space.

However, this bullishness is being effectively neutralized by growing macro anxiety. The drumbeat of corporate layoffs, led by news from Amazon (AMZN) and UPS (UPS), is fueling concerns about a broader economic slowdown. Adding to the complexity, oil prices are hitting four-month highs amid renewed geopolitical tensions, an inflationary headwind that directly complicates the Fed's task. The market is now coiled, awaiting Powell's commentary to break the stalemate.

Markets Hit Pause Button Ahead of Fed

The morning's powerful tech-led rally has ground to a halt, with the S&P 500 erasing its earlier gains to trade flat on the day. After decisively clearing the 7,000 level at the open, markets have entered a classic holding pattern as traders refuse to place significant bets ahead of this afternoon's pivotal Federal Reserve interest rate decision and subsequent press conference with Chair Jerome Powell.

Beneath the quiet surface, the day's key crosscurrents remain in play. The bullish case for AI infrastructure spending continues to build, with positive reports supporting names like Nvidia (NVDA) and Broadcom (AVGO). However, this is being offset by a persistent theme of corporate austerity. New reports that Amazon (AMZN) is preparing for significant layoffs tied to its own AI shift are adding to the cautious tone established earlier, highlighting how even the biggest players are cutting costs to fund new investments.

Geopolitical tensions are also adding a layer of complexity, with rising oil prices serving as a subtle reminder of the inflationary pressures the Fed is still battling. The market is now coiled, awaiting Powell's commentary to determine its next direction.

Rally Pauses at Record Highs Ahead of Fed, Big Tech Earnings

After an initial surge that pushed the S&P 500 past the 7,000 milestone for the first time, markets are now treading water. The early excitement, driven by continued strength in the semiconductor space, has given way to caution as investors look ahead to this afternoon's main events: the Federal Reserve's interest rate decision and a critical slate of earnings from tech bellwethers including Microsoft (MSFT) and Meta (META).

Beneath the surface of the record-setting index level, a narrative of corporate belt-tightening is growing louder. Amazon (AMZN) is back in the headlines with plans to cut another 16,000 jobs, bringing its recent total to 30,000. It's not alone; logistics giant UPS also announced plans to reduce its workforce by 30,000. This suggests a broad strategic pivot where companies are aggressively cutting costs to fund massive investments in efficiency and AI, a painful but necessary realignment in the eyes of many investors.

The divergence is clear at the stock level. AI-related chip stocks like Monolithic Power (MPWR) and Keysight (KEYS) are hitting all-time highs, while Apple supplier Qorvo (QRVO) is tumbling after issuing soft forward guidance. The market is rewarding perceived winners in the new tech cycle while punishing any signs of weakness.

Tech Powers S&P 500 Past 7,000 Milestone

The S&P 500 has surged past the 7,000 level for the first time, as a powerful tech-led rally takes hold in early trading. The momentum is a direct follow-through from overnight strength in the semiconductor space, where Dutch chip-equipment giant ASML posted record-shattering orders. This is providing investors with hard evidence that the massive corporate spending cycle on Artificial Intelligence infrastructure is translating into real revenue, overshadowing recent concerns about layoffs.

However, this bullish charge comes with a significant caveat. The market is rallying just hours before two major risk events: the Federal Reserve's interest rate decision at 2 PM ET, and a gauntlet of Big Tech earnings after the close from titans like Microsoft (MSFT), Meta (META), and Tesla (TSLA). This sets up a classic "rally into the event" scenario, with volatility expected to pick up significantly later in the session.

While the broader tech sector is strong, there are pockets of weakness. Apple supplier Qorvo (QRVO) is tumbling after issuing soft forward guidance, a reminder that the AI tailwind isn't lifting all boats equally.

AI Boom Clashes With Layoff Wave at Open

The market is opening to a deeply conflicting narrative, pitting a powerful, data-driven rally in the AI sector against a wave of corporate austerity from tech's biggest players. On one hand, the AI infrastructure build-out theme is undeniable, with strong forecasts from Corning (GLW) on fiber-optic demand for data centers adding to the pre-market bullishness sparked by chip giants ASML and SK Hynix.

On the other hand, the human and financial cost of this pivot is becoming clear. Amazon (AMZN) is in the spotlight after confirming its largest-ever corporate job cuts, slashing 16,000 roles. This suggests a massive reallocation of capital is underway, with titans cutting costs in legacy businesses to fund their historic investments in AI.

Outside of tech, Starbucks (SBUX) is a notable bright spot, surging after beating sales estimates and reporting its first positive traffic growth in two years. However, with a key Federal Reserve policy decision looming later today and bellwether Tesla (TSLA) earnings after the close, a sense of caution is tempering the sector-specific enthusiasm.

Chip Stocks Power Higher on AI Frenzy

U.S. equity futures are pointing to a strong open, propelled by a wave of overwhelmingly positive news from the semiconductor sector that confirms a massive AI infrastructure build-out is in full swing. The bullish momentum, which began overnight, was supercharged by blockbuster results from key players. Dutch equipment giant ASML posted record-shattering orders, and South Korean memory maker SK Hynix smashed earnings forecasts, with both companies directly citing unprecedented demand related to Artificial Intelligence.

This hardware spending spree provides a powerful tailwind for the tech sector, but it's occurring alongside a significant corporate reshuffling. The dominant counter-narrative this morning is the scale of layoffs at Amazon (AMZN), which confirmed plans to cut 16,000 jobs. This suggests a great reallocation of capital is underway, with tech titans aggressively cutting costs in legacy areas to fund their historic investments in AI.

Beyond the core tech story, there are pockets of strength elsewhere. AT&T (T) is trading higher in the pre-market after reporting strong subscriber growth, and GE Vernova (GEV) gained on a raised outlook. However, the focus remains squarely on the AI ecosystem as investors await the opening bell.

Amazon Layoffs Cast Shadow on AI Rally

A more cautious tone is emerging in the pre-market session as a wave of significant corporate layoffs complicates the overwhelmingly bullish narrative around Artificial Intelligence. The main catalyst is heavyweight Amazon (AMZN), which announced its largest-ever corporate job cuts, slashing 16,000 roles. The move is being framed as a course correction after pandemic-era over-hiring and a strategic pivot to fund investments in areas like AI.

This theme of cost discipline amid an investment boom is being reinforced by news from within the semiconductor space itself. Even after reporting record-shattering orders, chip equipment giant ASML announced plans to cut 1,700 jobs. This suggests that even companies at the heart of the AI build-out are aggressively optimizing their operations.

This wave of layoffs provides a sobering counterpoint to the powerful hardware demand story that has been building overnight. While the results from ASML and SK Hynix confirm a massive AI infrastructure investment cycle is underway, the human cost and focus on efficiency from mega-caps are now a key factor for investors to digest ahead of the opening bell. All eyes will turn to Tesla (TSLA) earnings after the close for the next major signal on the health of Big Tech.

AI Investment Narrative Intensifies Pre-Bell

The powerful pre-market theme of an all-in AI investment cycle is gathering more evidence, creating a strong tailwind for the technology sector ahead of the open. The latest catalyst comes from Nebius (NBIS), which is repositioning itself as a dedicated AI infrastructure provider and has announced significant long-term agreements with mega-caps Microsoft (MSFT) and Meta Platforms (META). This move underscores how the demand for AI compute is reshaping corporate strategies and forging new, high-value partnerships.

This news builds directly on the overnight strength seen from hardware players. Following blockbuster reports from ASML and SK Hynix, SK Hynix further committed to the theme by announcing plans to establish a special U.S.-based 'AI Company' backed by a $10 billion investment. Separately, sentiment around Apple (AAPL) is positive, with reports anticipating its strongest iPhone sales growth in years.

However, the picture isn't universally bullish. Within the semiconductor space, chipmaker UMC is a notable laggard after its profit dropped 33%, serving as a reminder that the AI boom is not lifting all boats equally. Elsewhere, regulatory headwinds persist for Big Tech, with European officials initiating new compliance proceedings against Google (GOOGL) over its Digital Markets Act obligations.

Semis Soar, Luxury Sinks in Pre-Market Action

A starkly divergent market is taking shape hours before the opening bell, as a powerful, data-driven rally in semiconductors clashes with a significant downturn in the luxury goods sector. The bull case for Artificial Intelligence is gaining overwhelming evidence, with chip-making giant ASML and memory producer SK Hynix both delivering blockbuster results fueled by unprecedented AI-related demand. These reports confirm the AI infrastructure build-out is translating into massive real-world orders, providing a powerful tailwind for the tech sector.

However, the optimism is not universal. In Europe, luxury titan LVMH saw its shares plummet after reporting disappointing fourth-quarter results that lagged competitors. This has cast a pall over the high-end consumer discretionary space, signaling that even wealthy consumers may be showing signs of restraint and creating a significant drag on European indices.

Against this backdrop, the U.S. dollar continues to show weakness following yesterday's politically-driven selloff, a dynamic that is pushing assets like Gold higher. With the Federal Reserve's latest policy decision on deck, investors are navigating a complex environment where a secular tech boom is running headlong into sector-specific weakness and macro uncertainty.

AI Hardware Boom Confirmed by SK Hynix Beat

The powerful AI investment narrative dominating the overnight session has just received another major validation. South Korean memory chip giant SK Hynix (SKHY) smashed earnings estimates, crediting soaring demand for its high-performance chips used in AI servers. This provides a crucial piece of evidence that the AI build-out is translating directly into massive sales.

This blockbuster report comes on the heels of record-breaking orders from chip equipment maker ASML, creating a potent one-two punch for bulls. While ASML makes the complex machinery, SK Hynix's results confirm the end-market demand for the components is robust. Further underscoring the theme, reports are highlighting Arista Networks (ANET) as a key partner for hyperscalers like Microsoft (MSFT) in building out the next generation of AI data center networking.

This wave of positive, sector-specific news appears to be overshadowing the macro inflation concerns flagged earlier, setting the stage for a potential battle between secular tech growth and cyclical economic headwinds at the opening bell.

AI Investment Boom Accelerates with SoftBank/OpenAI Talks

The narrative of a massive, ongoing AI investment cycle is gaining significant momentum in the pre-market session. New reports indicate that Japan's SoftBank (SFTBY) is in talks to pour as much as $30 billion more into ChatGPT-maker OpenAI. This potential flood of private capital reinforces the theme of an all-out spending race in artificial intelligence, providing a powerful tailwind for the entire ecosystem.

This news comes directly on the heels of blockbuster results from semiconductor equipment giant ASML, which reported record-shattering orders driven explicitly by AI-related demand. The combination of private equity enthusiasm and hard industrial data paints a clear picture: the capital required to build out AI infrastructure is immense, and key players are not hesitating to deploy it.

However, this AI-fueled optimism is being tempered by signs of discipline elsewhere in Big Tech. Fresh reports detail corporate layoffs at Amazon (AMZN), including in its AWS and Prime Video units, alongside a major reshaping of its physical grocery footprint. This suggests that even as mega-caps invest heavily in AI, they are actively cutting costs and refocusing in other core areas, creating a bifurcated narrative for investors to navigate at the opening bell.

AI Bull Case Gets Major Boost From ASML

The bullish narrative for the semiconductor space received a powerful shot in the arm overnight as key equipment supplier ASML reported blowout quarterly bookings, driven explicitly by soaring demand for AI chipmaking capacity. The Dutch firm, whose technology is essential for manufacturing advanced chips, saw Q4 bookings surge to 13.2 billion euros, dwarfing the 5.4 billion from the prior quarter.

In a statement, the company's CEO pointed directly to a "notably more positive assessment" from customers based on the "sustainability of AI-related demand."

This blockbuster report provides a significant counterweight to the inflation fears that were stoked earlier by hot Australian CPI data and rising oil prices. While macro headwinds remain a concern, this hard data from a bellwether like ASML reinforces the thesis that the AI investment cycle is a powerful, secular trend that can potentially override broader economic jitters.

Inflation Headwinds Gather as Oil Prices Rise

A new potential headwind is emerging in the overnight session as oil prices are firming up. The move is attributed to lingering supply concerns in the U.S. following recent winter storms, adding another layer to the global inflation narrative.

This development in the energy market comes on the heels of hotter-than-expected inflation data out of Australia. Together, these data points serve as a reminder that macro pressures persist, potentially complicating the outlook for central bank policy. This cautious backdrop is forming a notable contrast to the sector-specific optimism driving the AI space, where investors are still digesting bullish news for Nvidia (NVDA).

AI Bulls and Bears Clash Ahead of Open

Investors are digesting a potent mix of conflicting signals in the AI space overnight, setting up a potential tug-of-war for the technology sector. On the bullish side, market-leader Nvidia (NVDA) received a significant boost from reports that China has approved the first shipments of its H200 AI chips. This news, combined with a surprisingly strong forecast from chip bellwether Texas Instruments (TXN), fueled a rally in Asian markets and suggests continued momentum for semiconductors.

However, a strong cautionary note is sounding from one of Wall Street's most respected valuation experts. NYU Professor Aswath Damodaran, the 'Dean of Valuation,' warned of a "Big Market Delusion" in AI, revealing he has sold his entire position in Nvidia due to what he sees as an unsustainable disconnect between valuations and future revenue. This creates a stark intellectual battleground for traders.

Adding to the cautious sentiment, hotter-than-expected Q4 inflation data out of Australia is serving as a global macro reminder that the fight against inflation is not over, potentially tempering risk appetite ahead of the Federal Reserve's upcoming policy decisions.