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POP! POP! POP!
This seems to be the proximate cause:
The sell-off came after US data on Wednesday showed stateside inflation jumped to a higher-than-expected 3.7% in September, marking the fastest increase in prices since the consumer price index (CPI) rate hit a three-year peak of 4.2% in May.
Fresh data on Thursday showing US producers increased their prices by 6.3% year on year in September – the sharpest rise since December 2022 – added to inflationary jitters.
The figures have rattled investors who are now expecting fresh interest rate increases by the US Federal Reserve, with some punters pricing in another increase as soon as the end of the month.
It seems that investors are worried AI debt will be even more difficult to pay off once the Fed jacks up interest rates
To be expected since none of these AI companies are turning profits.
I don’t know what the plan is. Double our electric bills, take our water, take our jobs, and expect everyone to pay monthly for your crappy generative AI that most people never asked for?
Uh…yeah. That’s the plan.
Nvidia is, but they spent it on the bubble
Nvidia is the guy selling pickaxes to the gold diggers. This enriches only the guys with land that actually has gold (like 3-letter agencies and the military) and the guy selling pickaxes.
People have been predicting this for a long time. Is anyone buying puts?
The market can stay irrational longer than you can fund a put.
You can be right and still lose everything.
Funny I’m not “seeing” this in the PM’s markets. In fact silver right now is about the lowest I have seen in ages, fighting off the idea of buying some Au/Ag.
EDIT:
But in the spirit of what I think the AI boom is going to do:
