From "AI-phoria" to "AI-phobia": Nasdaq Plummets! Time to Rotate Into Defensive Sectors?

Tiger_comments
02-13
Reward Tiger-CoinsReward 500 Tiger-coins

Just a few months ago, we were all riding the "AI-phoria" (AI euphoria) wave. Now, the market seems to have flipped into "AI-phobia" (AI fear) mode almost overnight. With the $NASDAQ(.IXIC)$ dropping over 2% last night and tech giants stalling, giants like Walmart and Coca-Cola are quietly hitting new highs.

Is this a turning point for the bull market? Should we be shifting our portfolios toward defensive sectors?

1. The AI "Reaper" is Looking for Losers

The logic has shifted. Previously, everyone believed AI would change the world; now, everyone is worrying: Whose rice bowl is AI going to break?

This anxiety is spreading from traditional software into the $10 trillion information services market, including finance, real estate, logistics, and law. If $700 billion in annual AI investment starts disrupting these sectors, the consequences are real:

  • The Mag7 Myth Crumbles: Microsoft (MSFT) has officially entered a bear market, down over 25% from its recent high. Amazon (AMZN) followed suit after eight consecutive days of losses. Meta is now teetering on the edge of the bear market threshold.

  • Capital Expenditure Pressure: Investors are no longer buying into "grand visions." Instead, they are anxious about aggressive AI spending plans and the resulting pressure on profit margins.

2. The Rise of "Defensive Titans"

As tech stocks face a "3-standard-deviation" sell-off, capital is fleeing to safe havens.

Consumer Staples and Utilities are leading the gains. $Wal-Mart(WMT)$ surged 3.78% and $Coca-Cola(KO)$ rose 0.51%, both hitting record closing highs.

If the future of AI is murky, should we return to traditional industries that generate steady cash flow?

output0.pngoutput0.png

3. The Macro "Tightening": Is the Rate Cut Dream Over?

The January non-farm payroll report threw a bucket of cold water on heated rate-cut expectations.

130k new jobs were added, far exceeding the expected 55k.

A March rate cut is essentially off the table (probability dropped below 6%), and the market has pushed expectations for the first cut back to July.

Trump’s social media posts calling for the "lowest interest rates in the world" to save trillions in interest payments, the robust employment data makes it difficult for the Fed to pivot in the short term.

Discussion: Are You "Switching Cars"?

The market is currently at an extremely sensitive inflection point. On one hand, we have the valuation reset of tech giants; on the other, macro interest rate volatility.

What’s your take?

How far do you think the Nasdaq will fall?

Have you trimmed your tech holdings recently?

Share your portfolio strategy in the comments to win tiger coins!

80% Rate Cut By June: Will S&P 500 Extend Gains?
US January CPI surprised to the downside, with headline inflation rising just 0.2% MoM (vs. 0.3% expected) and 2.4% YoY, the lowest since last May. Core inflation also came in softer than forecast, pushing market pricing for a Fed rate cut before June to 80%. Treasury yields slipped as traders pulled forward easing bets, while equities initially cheered the cooling inflation print. Does softer CPI reflect higher possibility of rate cuts? Will the S&P 500 extend gains on rate-cut optimism?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Reward expired
Due to insufficient number of valid participants, 500Tiger coins have been refunded to the initiator
Deadline to 02/26 10:33
Reward-post

Comments

  • Shyon
    02-13
    Shyon
    From my perspective, this swing from “AI-phoria” to “AI-phobia” feels more like a valuation reset than the end of the bull market. AI isn’t going away, but timelines are being repriced. The rotation into names like $Wal-Mart(WMT)$ & $Coca-Cola(KO)$ tells me the market is favoring certainty and cash flow over big narratives for now.

    That doesn’t mean tech is finished. What’s breaking is the belief that mega-cap tech can rise endlessly without scrutiny. Stocks like Microsoft, Amazon, and Meta now need to prove AI spending can translate into profits. I’ve trimmed some stretched positions, but I’m holding quality platforms rather than exiting tech entirely.

    On the macro side, strong jobs data keeps the Federal Reserve cautious, despite rate-cut hopes and noise from Donald Trump. My strategy remains a barbell: core tech for the long term, defensives to manage volatility. To me, this isn’t switching direction—it’s slowing down at a sharp bend.

    @Tiger_comments @TigerStars @TigerClub

  • koolgal
    02-14
    koolgal
    🌟🌟🌟AI欣快感和AI恐惧症只是同一个演员穿的两套服装——人类情感。底层技术并没有突然变得毫无用处。对计算的需求不会在一夜之间消失。内存超级周期并没有因为一些分析师感到紧张而自行逆转。

    改变的是情绪，而不是基本面。

    那么投资者应该怎么做呢？

    重温你的论文，而不是标题。如果你的信念建立在真实需求之上——数据中心、芯片、内存、基础设施、企业采用，那么情绪波动就是噪音，而不是论文破坏者。

    我将继续将美元成本平均投资于我最喜欢的科技股 $谷歌(GOOG)$ $英伟达(NVDA)$ 因为这是抄底的最佳时机。

    人工智能不会消失。但是市场呢？它会像钟摆一样继续摆动。我的工作不是随波逐流。我的工作是坚持我的信念，让噪音像暴风雨一样过去，很快就会过去。

    @Tiger_comments @TigerStars @TigerClub @Tiger_SG @CaptainTiger

  • 1PC
    02-15
    1PC
    🐯From AI‑phoria to AI‑phobia[Sad]NASDAQ dropped >2% as Mag7 giants falter, but I’m staying with techs. MSFT & AMZN may be in bear territory, yet AI infra demand is intact. Defensive titans like WMT & KO are rising, but I see this as rotation, not regime change.🎯My strategy: Observe 22,297 level, wait to add on dips — Conviction in tech remains[Cool].@JC888 @Barcode @Shyon @koolgal @Shernice軒嬣 2000 @Aqa @DiAngel
    • koolgal: 
      Great insights 🥰🥰🥰
  • Cadi Poon
    02-15
    Cadi Poon
    This anxiety is spreading from traditional software into the $10 trillion information services market, including finance, real estate, logistics, and law. If $700 billion in annual AI investment starts disrupting these sectors, the consequences are real
  • Universe宇宙
    02-14
    Universe宇宙
    AI, whether with or without robotics, cannot replace jobs that depend heavily on manual labor, like farmers, caregivers, and construction workers. Therefore, if you want to protect your livelihood, consider pursuing opportunities in these fields or investing in these sectors! [YoYo]
  • Tiger_comments
    02-19 17:25
    Tiger_comments
    Thanks for participating in my discussion. Your coins have been sent through the tiger coin center!
    Check them in the history - "community distribution"
    @Star in the Sky
    @Cadi Poon
    @北极篂
    @ECLC
    @Universe宇宙
    @ZhongRenChun
    @highhand
    @北极篂
    @L.Lim
    @這是甚麼東西
    @Chrishust
    @北极篂
    @LazyCat Invests
    @icycrystal
    @BTS
    @Shyon
    @Mrzorro
    @AN88
    @北极篂
    @北极篂
    @koolgal
    @TimothyX
    @1PC
    @xiaomaoyizi
Leave a comment
33
76