Nvidia Market Reaction Shows US Rally Is Over, Morgan Stanley’s Wilson Says
- No boost from Nvidia results signals more declines ahead
- Fed Chair Powell’s speech Friday won’t ‘save the day’: Wilson
Nvidia headquarters in Santa Clara, California.
Photographer: Philip Pacheco/BloombergThis article is for subscribers only.
The drop in US stocks on Thursday despite a bumper report from Nvidia Corp. shows the rally this year is “exhausted” and portends more declines to come, according to Morgan Stanley’s Michael Wilson.
The bearish strategist — who recently conceded that he was too pessimistic in his outlook for 2023 — said the broader market reaction to the US chipmaker’s blowout forecast was a perfect indicator of a market peak. The S&P 500 had started the session higher, but sank 1.4% — its biggest decline in three weeks — by the close as higher bond yields overshadowed the buzz around artificial intelligence.