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The market's surprising reversal, Gap's viral ad, AI regulation and more in Morning Squawk

1. Stocks fell sharply post-Nvidia earnings, questioning AI market confidence. 2. U.S. added 119,000 jobs, but unemployment rose to 4.4%. 3. Nvidia shares dropped despite exceeding earnings expectations, closing down 3%. 4. Federal Reserve rate cut hopes revived by comments from Fed officials. 5. Gap's sales beat expectations, indicating strength in value-oriented retail.

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FAQ

Why Bearish?

Mixed labor market signals and falling tech stock prices may worry investors; historically, tech downturns impact S&P 500 valuations.

How important is it?

Recent declines in major stocks and bearish sentiment around AI could influence S&P 500 performance substantially.

Why Short Term?

Immediate market reactions reflect investor sentiment more than long-term fundamentals, as seen in previous earnings seasons.

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