Jerome Powell cut interest rates by 0.25% and downplayed fears of an AI bubble. Investors reacted with sophistication: Meta and Microsoft sold off sharply overnight, but Google rose 7%. Bitcoin dropped to $110,000.

U.S. Federal reserve chairman Jerome Powell bifurcated the stock market yesterday when he delivered the 0.25% rate cut that the market was expecting and then, unexpectedly, said he did not believe that the AI sector was in a bubble akin to the dot com boom of 2000.

The broad index of large-cap companies in the S&P 500 closed flat, but the tech-heavy Nasdaq 100 rose 0.55%. Tech stocks were led by Nvidia , which was up 3%, and now has a market cap of more than $5 trillion. (Its stock is down 0.7% premarket this morning, suggesting that some traders are taking thei

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