Goldman’s Flood Sees ‘Extreme’ Focus on Hedging Driving Selloff

Goldman Sachs Group Inc. participated in a $454 million debt deal from Chicago, acquiring a portion of the municipal bonds. Despite increasing yields on the sales-tax bonds, which are rated higher than the city's credit rating, Goldman was left with $75 million in debt from this transaction.

Asian stocks fell sharply following losses on Wall Street, where a brief rally led by Nvidia Corp. quickly dissipated. Investors are retreating from riskier assets, including cryptocurrencies, amid growing concerns about market volatility.

Amundi CIO Vincent Mortier expressed concerns about the excessive hype surrounding Nvidia Corp., despite acknowledging the company's strong position in the artificial intelligence sector. He indicated that while Nvidia is performing well, the increasing competition may pose challenges ahead. Mortier's comments were made during an interview with Bloomberg Television.

European stocks ended a five-day losing streak following Nvidia Corp.'s unexpectedly strong revenue forecast, which alleviated investor concerns regarding a potential artificial intelligence bubble. The positive outlook from Nvidia has provided a boost to market sentiment.

Nvidia Corp. has projected sales of approximately $65 billion for the fiscal fourth quarter, exceeding analysts' expectations of $62 billion. This forecast indicates a robust demand for Nvidia's artificial intelligence accelerators, reflecting the company's strong position in the AI market.

Nvidia Corp. is set to report its earnings on Wednesday, providing insights into the significant investments being made in artificial intelligence. The market's reaction, particularly given the recent downturn, remains uncertain. Wall Street is closely monitoring how these earnings will reflect on the broader tech sector amidst growing concerns about AI spending.

Shares of major technology companies surged in late trading, driven by Nvidia Corp.'s optimistic outlook, which is expected to rejuvenate Wall Street's artificial intelligence-driven rally. The positive sentiment surrounding Nvidia's performance has alleviated concerns about a potential bubble in the AI sector.