Weekly Market Wrap: Nvidia falls, Bitcoin crashes, Fed hints at rate cut

Cathie Wood's ARK Investment Management has made headlines by purchasing shares of CoreWeave, a cloud infrastructure company backed by Nvidia, amidst a significant downturn in its stock price following a revised sales outlook. This acquisition comes as CoreWeave faces challenges in the AI market, which has recently seen volatility due to investor concerns about an AI bubble.

Finnish President Alexander Stubb, alongside Italian leader Giorgia Meloni, has engaged in discussions with former US President Donald Trump regarding a 28-point peace plan aimed at resolving the ongoing conflict in Ukraine. Stubb, who has a favorable rapport with Trump, refrained from disclosing specific details about their conversation during an interview at the Group of 20 leaders meeting in Johannesburg. He emphasized the need for patience in peace negotiations and noted that European nations were not previously informed of Trump's proposal.

Emerging-market money managers are increasingly focusing on Latin America as upcoming elections may reshape the region's political landscape, potentially aligning several countries with Donald Trump's policies. This shift is seen as a strategic move to capitalize on anticipated changes in governance and economic direction.

Nvidia recently reported record earnings of $57 billion, significantly exceeding analysts' expectations and alleviating concerns regarding a potential AI bubble. This strong performance has generated excitement among investors and positively impacted market sentiment, particularly in the tech sector.

President Donald Trump's latest diplomatic efforts in Ukraine focus on securing financial agreements as part of his peacemaking initiatives. This approach reflects his ongoing strategy to leverage dealmaking in shaping U.S. foreign policy.

The U.S. government is considering allowing Nvidia to sell its H200 chips to China, according to sources. This potential decision comes amid ongoing scrutiny of semiconductor sales to China, particularly in light of national security concerns. The H200 chips are significant for AI applications, and their sale could have implications for U.S.-China relations in the tech sector.

Nvidia CEO Jensen Huang expressed concerns about the company's position amid discussions of an AI bubble, stating that the market did not recognize the company's strong quarterly performance. Huang's comments were revealed in a leaked meeting, highlighting the challenges Nvidia faces despite its recent successes.

Investors are expressing concerns that the artificial intelligence (AI) sector may be experiencing a bubble, particularly affecting stocks associated with OpenAI, SoftBank, and Oracle. Despite strong earnings from Nvidia and the successful launch of Alphabet's Gemini 3 Pro AI model, stocks related to OpenAI are declining. This trend indicates a selective market reaction within the tech industry, raising questions about the sustainability of AI investments.