Nasdaq is looking for a profit now that Nvidia is turning a corner

Live2 updates

• Tuesday, June 25, 2024 at 3:40 AM MST

  Table of Contents

  Toggle

  One major market risk for 2025

  As if you need another money issue to worry about.

  In an exclusive interview with Yahoo Finance’s Jennifer Schonberger late Monday, US Treasury Secretary Janet Yellen reminded investors that Trump’s tax cuts will expire in 2025.

  I can’t think of the last investor I spoke to who expressed concern about expiration and its potential impact on the markets.

  But Yellen did her best to bring this back to attention:

  “The signature policy of the Trump years was the Tax Cut and Jobs Act, and it promised an investment boom that didn’t actually materialize. It gave huge tax breaks to corporations and wealthy individuals. And it resulted in a huge increase in the budget deficit. and have reduced tax revenues below historical norms. And I think that’s responsible for a lot of the problems that we’re facing now with our budget path. And so it would concern me if I left all that in place.

  How markets will react in 2025 if tax cuts are not extended due to deficit concerns is of course completely unknown today. However, it should not be ignored in your investment planning process. Just consider this: no extension of the tax cut would mean the top tax rate would return from 37% to 39.6%.

  That’s real money for real people.

  You can watch Jenn’s full interview with Treasury Secretary Janet Yellen below.

• 

  Tuesday, June 25, 2024 at 3:22 AM MST

  A useful reminder on Nvidia

  While everyone now seems to be an Nvidia (NVDA) expert and waxing poetic about the stock’s recent abrupt drop, I won’t be going that route this morning.

  Instead, I wanted to present some factual numbers with the help of BTIG’s technical analyst Jonathan Krinsky. They provide some nice context as to why Nvidia stock is taking a brief pause.

  Here’s what Krinsky has to say, as if to remind the masses that stocks don’t rise every day.

  “NVDA recently traded ~100% above its 200-day moving average. Since 1990, the widest spread that a US company has ever traded above its 200-day moving average, while being the largest company, was in March 2000 by Cisco (CSCO ) 80%. In other words, NVDA is in a league of its own. It’s also notable that at its peak last week, NVDA briefly surpassed Microsoft (MSFT) on March 24, 2000 marked the high of both CSCO and the Nasdaq to this day. While we fully acknowledge that the fundamentals are very different this time around, NVDA is up +4,280% over the past five years compared to CSCO’s +4,460% gain over the five years. prior to its peak. Over the past 18 months, NVDA was +827%, which is effectively double CSCO’s 18-month gain in ’00.”