The Breakdown The Worst Day in Stonks Since 2024
Jul 26, 2024
The podcast delves into the reasons behind NASDAQ's drop, tech companies' earnings reports, AI infrastructure challenges, Wall Street's shifting narratives, monetary policy perspectives, potential Fed rate cuts, yield curve inversion impact, and economic warning signs like negative Treasury yield spreads, weakening job market, and doubts about the effectiveness of Fed rate cuts.
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Stock Market Rout
- The stock market experienced its worst day since 2022, with the NASDAQ falling by 3.6%.
- This sharp drop signals a potential trend change after a long period of growth for US stocks.
Tech Earnings Impact
- Poor earnings reports from major tech companies like Tesla and Google triggered the mega-cap tech collapse.
- Google's increased capital expenditure on AI raises questions about short-term profitability.
AI Investment Concerns
- The market questions the return on investment (ROI) of substantial AI infrastructure spending.
- While AI investment may yield future profits, the immediate concern is a growth slowdown.