Fed hold rates, optimism flowed back in. But squashed in 12 hours.
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So $Alphabet(GOOG)$ and $Microsoft(MSFT)$ announced earnings yesterday after market close, followed by the fed decision to hold rate. Google got absolutely smashed on market open, posting the biggest drop in one day in it’s history of existence. The debt that AI spending accumulated is put on the pedestal and scrutanized again. The “feel good” feeling and renewed optimism in tech because of news that Anthropic IPO is impending basically got wiped out in less than a day time.
This proves that even mega caps are struggling to justify the debt they are accumulating d/t the AI horserace to the finish line. Makes me wonder will the hype for companies like Anthropic last? Or will the debt prove too much to handle? Let’s see how it plays out when the day of IPO comes. But this trend basically still coincide with my consensus that the market is traditonally going on a downtrend towards end of the year, and rally into 2027.[Tongue]
@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]
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