Friends
Ok, I’ll take the blame. Yesterday, I closed with “the bulls are firmly entrenched on the high ground”, not knowing that the bears were planning a massive surprise attack. Who knew that opening the government would be a sell signal? Actually, concerns that the Fed is less likely to continue rate cuts in December seems to be gnawing at market participants. We’ve discussed bubbles and valuation for months now, so days like this shouldn’t be a surprise, but it certainly gives the bulls pause.
For the day, the Dow Jones Industrial Average was down 797 points to close at 47,457. The S&P 500 was down 113 points to finish the day at 6,737. The Nasdaq Composite Index suffered the most, down 536 for the day to close at 22,870. Gold was down $41 to trade at $4,172 per ounce, while oil was up $.19 to trade at $58.68 per barrel WTI.
Is the AI trade blowing up? I have no idea, but we have seen lately the volatility involved in the AI trade and that is likely to last. Did the bears take control of the situation with today’s drubbing? Well, let’s just see how the week finishes up tomorrow. Stay tuned.
Have a nice evening everyone.
