Tech Stocks Take a Dip: AI Competition Heats Up

The Nasdaq composite took a hit on Tuesday, ending a brief winning streak. Investors are worried about the growing competition in the artificial intelligence (AI) sector. Nvidia and other tech stocks saw a decline. This happened after a report said Meta is thinking about spending a lot on Google's AI chips. Meanwhile, Alphabet, Google's parent company, saw its stock rise. It's been on a winning streak and is close to hitting a $4 trillion value. The stock market was also watching some delayed economic news. Retail sales went up by 0. 2% in September compared to August. But this was less than what experts thought it would be. Producer prices went up by 0. 3%, which was what experts expected. This is important because it's one of the last pieces of information about inflation before the Federal Reserve makes a decision about interest rates. Recently, there's been hope that the Fed will cut rates, which has made the market more optimistic. A report from ADP showed that the private sector lost 13, 500 jobs in the four weeks ending on November 8. But not all news was bad. Some big retailers like Best Buy, Dick's Sporting Goods, Burlington Stores, and Kohl's raised their yearly sales forecasts. Other big names like Walmart have also been doing well. This suggests that the holiday shopping season might be a good one. In other news, the dollar got weaker against the pound and the yen. And Bitcoin prices dropped to around $87, 000.