AI-driven trading faces test from rate hikes: everything is falling except the U.S. dollar and U.S. Treasuries

Global risk assets were sold off on Tuesday, with South Korean stocks plunging and triggering a trading halt, Nasdaq futures falling more than 2.5%, and both gold and crude oil declining in tandem; only the U.S. dollar and U.S. Treasuries rose. The immediate trigger was rumors of tax reforms in South Korea, but the underlying pressure stemmed from rapidly intensifying expectations of Federal Reserve rate hikes—Bank of America now forecasts three rate increases this year, as markets shift from 'rate-cut trades' to 'higher-for-longer trades.' High-valuation technology stocks were hit hardest, with the AI-driven bull market currently facing multiple headwinds, including rising interest rates, tightening regulation, and a wave of large-cap tech IPOs. Upcoming key tests include Micron’s earnings report and the U.S. core PCE data due in the coming days.

wallstreetcnJun 23 18:00

Investment Implications of NVIDIA (NVDA.US) Topping the Data Center Ethernet Market: The AI Compute Boom Is Far From Over, and GPUs No Longer Solely Dominate the AI Bull Market

NVIDIA's rise to the top of the data center Ethernet switch market demonstrates that the 'AI compute supply chain demand surge' has fully expanded beyond AI GPUs and AI ASIC/TPU computing clusters to encompass the entire AI computing ecosystem—including HBM, advanced packaging systems, high-performance Ethernet networking infrastructure, optical interconnect systems, DPUs, data center cabling, ABF/glass substrates, switching chips, and even gas turbines and power management systems.

Zhitong FinanceJun 18 20:07

Markets unwind hedges ahead of Fed's Warsh debut: AI computing power supply chain emerges as the only consensus for second half of 2026

As the war risk premium associated with Iran has receded, traders have overwhelmingly resumed flocking to pre-war trading themes dominated by short-term U.S. Treasuries, Asian currencies, and the AI computing power supply chain. The AI computing power supply chain—led by NVIDIA, AMD, ARM, SK Hynix, and Micron—represented the strongest investment theme in the pre-war trading playbook.

Zhitong FinanceJun 17 22:18

Too cold at the top? Bank of America fund manager survey: Over half of managers believe AI is still in a 'boom phase,' but some are 'cashing out from elevated positions.'

A Bank of America survey shows that 56% of fund managers believe AI is still in a 'boom phase,' and 80% consider long positions in semiconductors to be the most crowded trade in history. As concerns over an AI bubble intensify, institutions have begun reducing exposure to technology stocks and global equities at elevated levels, increasing cash allocations, and shifting some capital toward defensive sectors such as financials and telecommunications—though most investors remain optimistic about AI’s long-term outlook.

wallstreetcnJun 16 19:10

Spending soars to $34 billion! OpenAI continues aggressive cash burn ahead of IPO as the AI arms race enters an era of surging revenue alongside deepening losses.

OpenAI's preliminary financial figures for 2025 exhibit the classic pattern of 'hypergrowth coupled with hyper cash burn.'

Zhitong FinanceJun 16 16:51

Forget AI, This Cash-Rich Name Is Quietly Outperforming Big Tech

TipRanksJun 14 15:13