Hello,
AI jitters persisted last week, with Broadcom and Oracle leading the sell-off. Both reported quarterly earnings that fell short of the market’s expectations. Oracle’s revenues missed forecasts and its AI-related debt continued to climb, sending its share price down 12.7%. Broadcom guided AI-related revenue to double this quarter year-on-year but warned that margins would narrow; its stock fell 7.8% on the week.
The market rotated out of growth and into more defensive sectors. The value-heavy Dow Jones recorded its highest-ever weekly close, while the tech-heavy Nasdaq Composite slipped 2.4% in euro terms. Value stocks were also supported by the Federal Reserve’s third interest rate cut of 2025, a 25-basis-point reduction announced on Wednesday. The vote split 9-3 within the FOMC, the most divided show of hands since 2019.
10-year German bund yields rose 6 basis points over the week (yields move inversely to price), continuing the broader climb in long-dated developed-market sovereign yields. Concerns over fiscal sustainability are partly responsible, alongside spillover from Japan, where bonds have weakened since the election of Prime Minister Sanae Takaichi and her planned spending increases.
As always, if you wish to discuss anything in this newsletter in further detail, please do get in touch.
If you’d like to discuss any of this in the context of your own portfolio or pension, book a consultation or call 01 253 3242.
Smart Financial Insurance Limited trading as Smart Financial is regulated by the Central Bank of Ireland. Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up.
