Last Friday, President Trump nominated Kevin Warsh as the new Federal Reserve chair. Gold markets did not expect this nomination, which would bring stability to the U.S. dollar and monetary system.
Silver (SLV) buyers scurried to close their position. SLV stock lost 28.54% on Jan. 30. Gold (GLD) lost 10.27% to close below $445. Newmont (NEM) fell, losing 11.5%. Although gold prices could retrace earlier lows, expect a brief bounce-back first.
In the semiconductor space, KLA (KLAC) lost 15.24% on January 30. On January 29, the firm posted a 7.1% Y/Y increase in revenue, to $3.3 billion in Q2. For Q3, the gross margin of 60.62% is healthy. However, investors overlooked the solid quarter and strong guidance. Instead, it gave in to fear and reset its expectations.
Alphabet (GOOG) continued to exert its dominance. This time, Project Genie threatened the gaming market. AppLovin (APP) fell by nearly 17% to close at $473.11. Genie can create virtual worlds. This product is available to AI Ultra subscribers in U.S. markets.
Unity (U), Take-Two Software (TTWO), Roblox (RBLX), and Nexon (NEXOY) also dropped. Investors who appreciate hardcore gamers should expect that AAA game titles are not under threat from Google. TTWO stock is particularly attractive. Take-Two’s Grand Theft Auto 6 is a likely blockbuster. Furthermore, gamers do not like AI-created content. That should help the aforementioned stocks in the video game sector.
Related Stories
