Nvidia’s latest results were enormous — sharp revenue growth, data-center sales above $50B, and guidance that underscored just how large the AI buildout has become. In almost any other period, the stock would have lifted the entire market for days.
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Instead, the rally faded within hours.
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This was what we highlighted last week: the market is shifting out of the phase where AI excitement overshadowed everything, and into one where earnings are judged more closely and valuations carry more weight again. Nvidia delivered a beat, yet the market’s reaction showed investors are no longer chasing every AI headline. When expectations sit this high, even great results struggle to move stocks meaningfully.
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This isn’t the end of the AI story — far from it — but it does mark a shift. The market is no longer moving on momentum alone, and selectivity matters again.
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That shift showed up clearly in how money moved this week. Trading stayed jumpy, liquidity remained thin, and ETFs drove nearly 40% of all flows — amplifying every swing. And while Big Tech struggled, investors rotated aggressively into Healthcare, which saw some of its strongest inflows in months. Healthcare’s rebound has been building ever since the PFE/Trump deal, but this week’s strength pushed it to its highest level relative to Tech since May — capped by Eli Lilly becoming the first healthcare company ever to reach a $1 trillion market cap.
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In other words: even as AI remains the long-term driver, investors are beginning to look for stability — not just the next headline.

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