Happy Friday! Michael Burry has built a reputation for spotting risks before they hit the mainstream, and his latest warning has Wall Street paying attention. With oil surging, AI spending exploding, and pressure building in the bond market, the legendary investor says this key area could determine how long the rally lasts.

Nvidia is breaking out and appears to be setting up for another major move higher. Read on to see how high it could go and why this Wall Street veteran believes the AI leader still has plenty of fuel left.

Plus, if you’re looking to better understand what the market is pricing in, check out today’s sponsor.

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• MARKET RECAP

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• FIVE ZINGERS

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Michael Burry's Chilling Warning As $100 Oil Collides With AI Debt Explosion

Michael Burry, the investor who famously predicted the 2008 housing crash, is sounding the alarm on a market collision that most investors aren’t watching.

As oil climbs, AI spending fuels a historic debt boom, and pressure builds in the bond market, the legendary investor says one key area could determine how long the rally lasts.

Discover the warning signs Burry believes Wall Street is missing.

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Yesterday: U.S. indexes finished sharply lower Thursday, with the Dow falling more than 500 points as surging oil prices and disappointing earnings from Tesla and Alphabet weighed on investor sentiment. Oil surged back above $100 per barrel again after Houthi militant group claimed attacks on two Saudi Arabian tankers in the Red Sea, raising fears the Middle East conflict could keep spreading and threaten global energy supplies. With oil back above $100, concerns have increased that another inflationary shock could complicate the Federal Reserve’s path on interest rates. Fed funds futures are now pricing in more than an 80% chance of a September rate hike, up sharply from 52% a week ago.

On Our Radar: Looking ahead, Wall Street will be paying attention to the latest readings on U.S. business activity through the S&P flash services and manufacturing PMIs, along with new home sales data. On the earnings front, all eyes will be on American Express (AXP) and Verizon (VZ) which report this morning.

Top Gainers: Lockheed Martin (LMT), United Rentals (URI), Danaher (DHR), Allegion (ALLE), Honeywell (HON), Micron (MU)

Top Laggards: Tesla (TSLA), Alphabet (GOOG), Amazon (AMZN), QuantumScape (QS), T-Mobile (TMUS), Strategy (MSTR), Shopify (SHOP)

Here's a look at some of the biggest winners and losers from Thursday’s session.

See how the market is moving with our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Catch-22: Chevron’s biggest stock rally since 2022 has investors celebrating, but one unexpected development could put the brakes on the energy boom. Find out what’s happening before the market catches on.

Buy Rating: Alphabet just gave Wall Street a major shock, sending shares tumbling after revealing another massive AI spending increase. However, this analyst believes investors are missing the most important part, and lists four reasons to buy the selloff.

The AI Trade: Intel may have just saved the market with a blowout earnings report to give chip and memory companies a boost. Read on for all the details and what it means for the AI trade.

ARK Moves: Cathie Wood and Ark Invest made several surprises yesterday. Discover on to see what stocks she’s been buying and selling.

Stock Of The Day: Tesla’s post-earnings plunge has erased key technical levels, leaving traders wondering how much further the stock can fall. See where shares are likely headed next.

Chris Capre: 3 Things Driving The Week Ahead

Is the AI trade unwinding or resuming? Iran/US tensions are heating back up. And AI/Mag 7 earnings are hitting the wires. Chris Capre goes live to break down the setups and get you ready before the open.

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