The Week Ahead (3-7 March) - AI Sentiment, NFP, UK earnings season
It was another strong week for the European markets, with the STOXX 600 making new all-time highs.The Samp;P 500 is a different story and is down by over 2% this week as concerns around AI prospects have cooled sentiment and taken the major US indices to 6-week lows.
Tesla (NSQ:TSLA) is down by 14% in five days. Talismanic CEO Elon Musk - officially the world’s richest man - has been working with the Trump administration and continuing to make headlines on a daily basis. But the company has also seen a very sharp drop in EU and UK sales. Competition from BYD has intensified, and Musk’s political activity may be alienating some potential customers.
NVIDIA (NSQ:NVDA) also had a tough week, down 11%. Revenues continue to grow at an explosive pace but sentiment is more fragile after the release of cheap software by Chinese AI upstart DeepSeek. Nvidia’s Q4 earnings did beat expectations and full-year revenue more than doubled to $130.5 billion. This stock remains the bellwether for investor sentiment around AI.The FTSE has been solid again, up 1%, with many FTSE-100 components reporting results recently.