Michael Burry: Big Tech AI Spending Weighs on S&P 500, Apple Gains

The headline notes that heavy AI spending by major technology companies has dragged the S&P 500 lower, while Apple managed to gain. Technical indicators paint a weak picture: the RSI at 39.3 is near oversold territory, the MACD is below its signal line, and the price is trading below the 20-day moving average (338.83). There is a slight decline of 0.18% in the last 24 hours, with the price hovering near the 50-day moving average (331.81). In the short term, despite the positive headline, a downward move can be expected due to weakness in technical indicators and the prevailing downtrend.

The headline notes that heavy AI spending by major technology companies has pulled the S&P 500 lower, though Apple managed to gain. This could create a mixed impact on the index. Technical indicators present a neutral picture: the RSI at 51 is neither overbought nor oversold, the MACD is negative but close to its signal line, and the price is above the 20-day moving average but below the 50-day average. Therefore, it is difficult to determine a clear short-term direction, and the market may be expected to stabilize around current levels.

The news indicates that heavy AI spending by major technology companies is dragging down the S&P 500, sending a negative signal for semiconductor stocks such as NVDA. Technically, NVDA's last close at $196.88 is just above its SMA20 ($195.15) but below its SMA50 ($202.93), suggesting short-term weakness. The RSI at 49.07 is in neutral territory, while the MACD is negative and below its signal line, indicating weak momentum. The 4.24% decline over the past 24 hours confirms increasing selling pressure. In the near term, these combined factors make it likely that NVDA will continue its downward trend.

MSFT shares have surged more than 17% in the last 24 hours, pushing the Relative Strength Index (RSI) to 83, firmly in overbought territory. This increases the likelihood of a short-term correction or profit-taking. Additionally, Michael Burry's warning that big tech companies' AI spending is dragging down the S&P 500 could trigger sector-wide concerns. While technical indicators point to a strong uptrend, the combination of overbought conditions and negative news supports a potential downward move in the near term.