“America’s D-Day is coming…” (from Traders Agency)
Markets had a rough week.
Tech stocks took a beating, and Wall Street's big names are sounding alarms you shouldn't ignore.
Here's what happened and why it matters.
Market Sell-Off
Tech stocks dropped hard this week. Nvidia $NVDA ( ▼ 4.17% ) fell 3.7% to $188. Palantir $PLTR ( ▲ 0.92% ) tumbled almost 7% to $175. Even Tesla $TSLA ( ▼ 1.49% ) slipped 3.5% despite major news.
What caused it? The prices got too high, too fast. Companies met their targets but investors decided to cash out anyway. When stocks trade at sky-high valuations, any excuse becomes a reason to sell.
Goldman Sachs and Morgan Stanley both issued warnings at their summit. Their message was clear: stock prices have climbed too far. Correction is coming. Not a crash necessarily, but a pullback to more reasonable levels.
Michael Burry Places His Bet
Remember the guy who predicted the 2008 housing crash? He's back.
Michael Burry just disclosed $912 million in bets against Palantir and $187 million against Nvidia. He thinks the AI bubble will pop.
Palantir's CEO Alex Karp fired back, calling Burry's position “crazy." His argument: both companies generate real profits and drive the AI revolution.
Who's right? Time will tell. His track record speaks for itself, even if his timing doesn't always line up perfectly.
‘China is Going to Win the AI Race’
Jensen Huang, Nvidia's CEO, dropped a bombshell. He said China is close to overtaking the U.S. in AI development. Beijing's pouring money into energy subsidies and homegrown chip alternatives.
Huang clarified later: the U.S. needs to focus on developer talent and innovation to stay ahead.
Meanwhile, Nvidia confirmed it won't sell its new Blackwell chips to China anytime soon. That's about policy compliance, not business preference.
Musk Gets His Pay
Tesla $TSLA ( ▼ 1.49% ) shareholders voted. Over 75% approved Elon Musk's $1 trillion pay package.
Yes, Elon Musk is officially the world's first trillionaire. Tesla will have to spend "a lot of money" on training Optimus, Musk says.
The vote confirms Musk's control and gives him resources to fund other ventures, including his AI company xAI. Whether that's good for Tesla shareholders remains debatable.
OpenAI Says No to Bailouts
Sam Altman shut down rumors fast. OpenAI is not seeking a government bailout for its AI data centers.
The confusion started when OpenAI's CFO mentioned a possible "government backstop." Altman clarified: winners and losers should be determined by markets, not taxpayers.
The only government connection involves loan guarantees for U.S. semiconductor manufacturing. That's about chips, not OpenAI's core business.
OpenAI's revenue is now running at over $20 billion annually. They don't need a rescue.
Trump's Drug Price Move
President Trump announced deals with Eli Lilly $LLY ( ▲ 2.93% ) and Novo Nordisk $NVO ( ▼ 0.45% ) to slash prices on obesity drugs. Some treatments will cost as low as $150 through a program called TrumpRX.
He also signed executive orders forcing U.S. drug prices to match the lowest international rates. It's called "Most-Favored-Nation" pricing.
Health officials predict major impacts on chronic disease outcomes. Lower prices mean more people can afford treatment.
Bottom Line
We're in a transition period. The easy money phase is over.
From here, stock picking matters more than it has in years.
Stay steady, stay balanced, and don't bet the farm on any single story.
The AI sector needs time to adjust valuations to reality. Some stocks will recover, others maybe won't.
Watch the earnings reports. Companies that show real profits and growth will bounce back.
The government shutdown (now at 37 days) adds another layer of uncertainty.
Don't panic, but don't ignore the warnings either. If you're overweight in tech, consider rebalancing.
Diversification works when markets get volatile.
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