NASDAQ crashes 3.60% on Massive Big Tech earnings misses. The AI overhype is in full effect, running costs will blow out consumer demand. The Fed is partially to blame for allowing speculation to run rampant, by claiming inflation has been tamed. It has not. Energy inflation is still high, thus costs are still being passed onto the consumer.

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As mentioned before, the markets are not smart, just greedy, and quicker than you, with a ton more money than you, actually it is your money duplicated with leverage via the Billions of dollars held in Pension Funds.  The Federal Reserve is partially to blame for allowing speculation to be that 'market' liquidity driver, while claiming the inflation fight is nearly over, it isn't.  Thus, the Billions, in fact Trillions awaiting on the sidelines poured back in awaiting for the Fed to cut rates later in 2024.  A priced in play, with a messy profit take, as the Tech sector, which is speculation personified, over juiced on AI mania, is selling off in gusto.  Why?  Because 'General' AI  (AI of the future) is going to be a very expensive interface that the average consumer may not be able to afford.  Costs, as you would expect have blown up forecasts etc.   Tesla, and Goggle took the hit, with the so-called magnificent 7 of tech companies all getting a share price beatdown.

But, the issue is not a looming recession for the U.S., with unemployment still at Thirty year lows, and energy inflation, which is the oil and gas markets stuck in mid to higher prices.  Please refer to the above chart, below pane, for the crude price.  Note, it is stuck between 77 and 79 trading range since June.  It is all about Middle East geopolitical issues.

A precarious tightrope:   

• Big Tech says AI is booming. Wall Street is starting to see a bubble - WSJ

• Nasdaq 100: Tech Stocks Fall as Tesla and Alphabet Earnings Disappoint - FX Empire

• Alphabet Stock Drops. Capital Spending Surprises the Street - Barron's

• Tesla missed quarterly earnings estimates. The electric vehicle maker reported a 45% decline in profit as artificial intelligence (AI) development costs increased and average vehicle sales prices declined - Investopedia