AI concept stocks plunge! U.S. stocks closed lower, and the divergence over interest rate cuts by the Federal Reserve intensified.

Overnight, U.S. stocks opened high but closed low, with all three major indices collectively declining. The AI infrastructure sector led the drop, with CoreWeave plummeting nearly 8%, Broadcom falling over 5%, and Oracle dropping over 2%.

The market is worried that the substantial investments in the AI field may not yield equivalent returns. Oracle is relying on debt to bolster its data center construction, raising its capital expenditure to $50 billion, with its debt-to-asset ratio soaring to 500%, prompting analysts to warn of cash flow and rating risks; Broadcom is also being sold off due to pressure on profit margins from its AI chip business.

There is a clear divergence within the Federal Reserve regarding interest rate cuts: Governor Mian is calling for faster cuts, worried about the deterioration of the labor market; New York Fed President Williams believes the policy stance is appropriate, and inflation will ease as employment cools; Boston Fed President Collins described last week’s support for rate cuts as a "difficult decision."

CME data shows that the probability of a 25 basis point cut in January next year is only 24.4%, and the cumulative probability of a rate cut in March is less than 50%. Additionally, Trump’s camp opposes Hassett’s candidacy for Federal Reserve Chair. Most tech stocks fell, while Tesla and NVIDIA rose against the trend $BTC #BinanceABCs .