The Real News From Yesterday Came From Amazon

Reports that Amazon is has paused some data center leases is another sign that the AI market is not going to be as broadly profitable as the market has been pricing-in.

• The action in the stock market yesterday shows that the markets do not like the idea of the Fed losing its independence. However, there were some other developments which showed that the earnings outlook would be deteriorating…whether the tariff issue became a problem or not. That is not good for those who think a sustainable rally is only one tweet away from taking place.

• Gold’s rally has been huge, but it’s due for a breather…and the decline in the dollar (and the USDJPY) is due for a bounce. So, we continue to believe that investors and traders should be very careful about chasing the recent trends in these two asset classes.