Stock market participants cannot get enough of the boom in Artificial Intelligence. Nvidia (NVDA) rekindled mentions of AI when it posted strong profits in its latest quarter. As it sits on a $2.66 trillion market capitalization, the next leg up might turn the firm into the most valuable firm. Chances are better that Microsoft (MSFT) stays ahead since it has a broader business that does not rely primarily on AI for its growth.
Consumers Unhappy
Consumer confidence continued to retreat last month. The consumer confidence index fell for three straight months in April falling to 97.0. Their spending patterns are the primary driver of the economy. Their concerns about future business conditions, employment, income, and inflation.
Investors should brace for demand to weaken on non-essential goods. Consumers will delay spending on high ticket-priced items. Be wary of Whirlpool (WHR), whose stock fell by another 5.32%. Automotive stocks like General Motors (GM) and Ford (F) are already facing weak auto sales. Still, those firms cut expectations on the money-losing EV sector.
Stellantis (STLA) shares already plunged by 24.4% from its high. It has the lowest risk. Ferrari (RACE) and Toyota (TM) have the highest quality. The former caters to wealthy consumers while the latter is a leader in the hybrid vehicle market. As EV sales worsen, Toyota has the best chance of thriving.
