Bloomberg getting that antsy feeling…
For stock bulls, yesterday’s reversal was as ominous as it was mystifying.
Nvidia’s quarterly earnings report bolstered the case that the AI-driven rally has longer to go, and investors reacted accordingly, pushing the Nasdaq 100 up as much as 2.4%.
Then, out of nowhere came the most dramatic intraday reversal in the US stock market since April. The Nasdaq ended down 2.4% at its lowest level in more than two months, leaving bewildered Wall Street traders scratching their heads about what exactly caused it all.
The bottom line is, markets already seem to reflect all the positives from the AI frenzy, and then some. Investors can’t shake the feeling that it’s all gone too far, and something’s going to crack, either in tech or the broader economy.
(Source)
I definitely have that feeling too…but there’s a mountain of data underneath supporting that.