On June 5th, US stocks took a big hit. The drop was triggered by a trifecta of factors: Broadcom's next quarter AI chip performance expectations came in below par, coupled with variable partnerships, leading to a reevaluation of the AI supply chain and a massive sell-off in the semiconductor sector; May's non-farm payroll data exceeded expectations by a mile, and with high oil prices, the market's interest rate hike expectations spiked, putting pressure on overvalued tech stocks.
This confluence of bad news created a negative feedback loop, resulting in a tech stock sell-off. However, it ain't all panic in the market, as small-cap indices managed to buck the trend and close up. This adjustment isn't a sign of an AI bubble bursting, but rather a return to reality from the previous extreme narrative of 'infinite growth', representing a normal correction in sector valuations. #QQQUSDT
This confluence of bad news created a negative feedback loop, resulting in a tech stock sell-off. However, it ain't all panic in the market, as small-cap indices managed to buck the trend and close up. This adjustment isn't a sign of an AI bubble bursting, but rather a return to reality from the previous extreme narrative of 'infinite growth', representing a normal correction in sector valuations. #QQQUSDT