$SPY is down 3% today, and QQQ is losing 5%—and the reason isn't what you expect.
Yesterday's U.S. elections gave Congress to the Democrats. The market cheered yesterday and rose 3% because oil fell 8%. Today, the market is worried about the same elections, but for a completely different reason.
The new Texas governor promised to stop construction of new AI data centers in the state. That alone is enough to scare the market, because Texas is the biggest hub for building AI data centers in America.
The result: Qualcomm plunged 10% before the market opened. AI tech funds lost 8%. South Korea fell 5.3% overnight, bringing the fear to America this morning.
The smartest part of the story is that most other sectors are doing fine. Healthcare, energy, and basic materials are stable. That means this isn't a broad market crash, but a targeted hit to the AI and tech sectors only.
The same election, interpreted two different ways on two consecutive days. That's the market.
Just my personal opinion, not investment advice. Always do your own research.
Yesterday's U.S. elections gave Congress to the Democrats. The market cheered yesterday and rose 3% because oil fell 8%. Today, the market is worried about the same elections, but for a completely different reason.
The new Texas governor promised to stop construction of new AI data centers in the state. That alone is enough to scare the market, because Texas is the biggest hub for building AI data centers in America.
The result: Qualcomm plunged 10% before the market opened. AI tech funds lost 8%. South Korea fell 5.3% overnight, bringing the fear to America this morning.
The smartest part of the story is that most other sectors are doing fine. Healthcare, energy, and basic materials are stable. That means this isn't a broad market crash, but a targeted hit to the AI and tech sectors only.
The same election, interpreted two different ways on two consecutive days. That's the market.
Just my personal opinion, not investment advice. Always do your own research.
