Happy Wednesday! Wall Street was rocked after Citrini Research floated an AI-driven “doomsday” scenario — but veteran strategist Ed Yardeni isn’t blinking with his 10,000 target. Here’s what investors need to know before the next big move.

Also, with new products from Anthropic this year, the AI-startup has erased hundreds of billions in market cap from software and cybersecurity companies for their biggest slid in decades. Read on to see why some analysts believe Wall Street may be mispricing the risk, and why this selloff could provide a compelling buy opportunity.

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In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

The Wall Street Showdown — AI Meltdown Or Melt-Up?

A dramatic AI “doomsday” scenario from Citrini Research rattled markets Monday, warning that AI could ultimately pull the rug out from under the economy.

But veteran strategist Ed Yardeni is pushing back — and he’s not abandoning his bold S&P 500 10,000 target.

As sentiment swings from anxiety to euphoria, investors are left facing the big question: is AI building the foundation for the next boom, or planting the seeds of the next bust?

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Yesterday: U.S. indexes bounced back Tuesday, led by strength in semiconductor and software stocks as investor concerns around AI disruption eased. AMD was one of the biggest gainers as it soared after announcing a multiyear agreement with Meta for its data centers. The deal follows Meta’s recent expansion and agreement with Nvidia last week. Meanwhile, Home Depot climbed higher after the retailer topped earnings expectations for the first time in a year, and IBM rebounded after huge drop in the prior session. Oil prices continue to climb and are off to their strongest start to the year since 2022, hover near seven-month highs. Meanwhile, Bitcoin was little changed on the day but remained on pace for its worst monthly close in four years.

On Our Radar: Analysts will be paying attention to crude oil inventories and remarks from several Federal Reserve members (Barkin, Schmid, Musalem) today for clues on the inflation outlook. On the earnings front, all eyes will be on Nvidia (NVDA) which will which will report after the market close today.

Shares of AMD (AMD), PayPal (PYPL), and Keysight (KEYS) were flying high, while Sandisk (SNDK), Expeditors (EXPD) and Western Digital (WDC) were among the day’s top laggards. But those weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Tuesday.

Check out our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Under the Radar: While Wall Street chases AI, and momentum darlings, one old-school metric has quietly compounded at 16.8% annually for over four decades. Benzinga’s Under The Radar report showcases five companies that funds are buying at steep discounts.

Short Report: Well-known short seller Citron Research, has taken a short position on SanDisk, claiming the NAND memory cycle is peaking and why Samsung is a threat nobody is talking about. Here’s everything you need to know.

Winners & Losers: A new AI feedback loop could squeeze SaaS profits while Nvidia keeps raking in record revenues. Discover which software giants are suddenly at risk — and why the winners aren’t who you think.

Golden Dome: The Pentagon’s $151 billion Golden Dome initiative is turning heads, and a select group of companies just earned a coveted spot on its SHIELD vendor list. See who made the cut and why they might deserve a spot in your portfolio.

Stock Of The Day: After hitting historic lows, PayPal is showing signs of life that traders can’t ignore. Could this oversold powerhouse be ready to surge again? Click to see why savvy investors are suddenly paying attention.

Do You Own These 3 ‘Trusted’ Stocks That Are Secretly Ticking Time Bombs?

That trendy fast food chain? The crypto darling? The energy stock everyone’s piling into? They look like winners...but under the hood, they’re propped up by pure hype. See if you own them — before the rug gets pulled and you’re left holding the bag.

On This Day In 1862…

President Abraham Lincoln signs the Legal Tender Act, authorizing the issuance of “greenbacks” — the first U.S. paper currency. This was a pivotal moment in American history and helped fund the Civil War amid low gold and silver reserves.

QUOTE OF THE DAY

“The best way to manage risk is to diversify your portfolio.“

— Ray Dalio

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