Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Nvidia (NVDA) share continued to decline on Tuesday after shares fell more than 10% since a record close in November. The chip giant’s shares fell nearly 3% in early trading before recovering from session lows.
The moves reflected a decline in all three major indexes, which have taken a breather as investors debate what might happen to the U.S. economy in 2025.
“This rally, which has been really dramatic since July, is starting to look a little fragile,” said James Demmert, chief investment officer at Main Street Research Morning newsletter from Yahoo Finance.
“Looking ahead to 2025, I think investors should start emotionally preparing for a normal market correction of 8% to 12%,” he warned.
Demmert, who said the Federal Reserve has “probably already reached neutral interest rates” and likely won’t need to cut rates much further from here, also touched on market breadth in the new year following the rapid rise of mega-cap companies Big Tech a stock.
According to Bank of America’s latest fund manager survey, “Long Magnificent 7 is considered the busiest trade,” according to 57% of investors surveyed.
“It was such a Mag-7 market,” said Demmert. “In 2025, we think these stocks will do well, but other things will also do well or better,” amid more attractive valuations and AI-driven use cases that are expected to boost returns.
