Stock Market update: eyes on GIS, MU, X and PHLX

Hey there, fellow readers!

Let's dive into the recent market developments and their impact on stocks and real estate.

U.S. stocks faced a challenging week, with Adobe's disappointing results causing a 13% drop and concerns about AI hype affecting the S&P 500 Software & Services Group, leading to a 2.5% decline.

The chip sector also experienced a 4% loss, with valuations at nosebleed levels, except for AI titan Nvidia. 

Real estate stocks encountered trouble due to a settlement by the National Association of Realtors, resulting in a 12-14% decline for companies like Zillow and Compass.

Despite the rough week, the Dow managed to close with a slight gain, while the S&P 500 and Nasdaq recorded their second week of declines. The PHLX Semiconductor Index remains above 30 times forward earnings, with Nvidia standing out due to its explosive earnings growth.

Trillions of dollars are available to move out of cash funds and be put to work in the stock market, but the continued growth of money-market-fund assets suggests that not everyone is comfortable with this transition. The relationship between safety and stability versus risk and reward isn't straightforward.

As we look ahead, the Federal Reserve meeting and quarterly results from companies like General Mills and Micron are events to watch closely.

Stay tuned for more updates and insights on the evolving market landscape!