Overnight recap: Tech stocks come under broad pressure, crypto market also sees volatility
Last night’s sell-off was indeed pretty brutal. The Nasdaq 100 plunged, the fear index surged, and semiconductor and memory stocks led the losses, with Nvidia, SanDisk, and AMD among the biggest decliners.
The main reason is that, after the midterm elections, the Democrats took control of Congress, and the market began repricing expectations for AI regulation. The possibility of slower data center approvals in Texas directly undermined the narrative of “unlimited expansion in AI capital spending.”
The shock waves also reached Asia-Pacific: South Korea’s index briefly triggered a circuit breaker, the Nikkei fell noticeably, and Samsung and SK Hynix came under pressure as well.
Things were unsettled in crypto, too. Trump Media recently transferred thousands of bitcoins to exchanges, which the market interpreted as potential liquidity preparation. The related token WLFI has extended its losses since election night. #非农今晚揭晓，美股能否绝地反击？ $BTC $ETH $ZEC
What’s the takeaway?
Yesterday afternoon, we flagged the negative news around data centers in advance, but last night’s scale of the move was indeed beyond expectations.
Haoyuan’s view: The market is resetting its expectations. The long-term AI framework remains intact; the timeline may simply stretch out.
Downward momentum is still strong, so there’s no need to rush to call a bottom. Scale in gradually and slowly, favor indexes over individual stocks, and avoid high leverage. The more volatile the market, the more important it is to stick to position discipline. Stay in the game, and you’ll be there for the next wave.
Last night’s sell-off was indeed pretty brutal. The Nasdaq 100 plunged, the fear index surged, and semiconductor and memory stocks led the losses, with Nvidia, SanDisk, and AMD among the biggest decliners.
The main reason is that, after the midterm elections, the Democrats took control of Congress, and the market began repricing expectations for AI regulation. The possibility of slower data center approvals in Texas directly undermined the narrative of “unlimited expansion in AI capital spending.”
The shock waves also reached Asia-Pacific: South Korea’s index briefly triggered a circuit breaker, the Nikkei fell noticeably, and Samsung and SK Hynix came under pressure as well.
Things were unsettled in crypto, too. Trump Media recently transferred thousands of bitcoins to exchanges, which the market interpreted as potential liquidity preparation. The related token WLFI has extended its losses since election night. #非农今晚揭晓，美股能否绝地反击？ $BTC $ETH $ZEC
What’s the takeaway?
Yesterday afternoon, we flagged the negative news around data centers in advance, but last night’s scale of the move was indeed beyond expectations.
Haoyuan’s view: The market is resetting its expectations. The long-term AI framework remains intact; the timeline may simply stretch out.
Downward momentum is still strong, so there’s no need to rush to call a bottom. Scale in gradually and slowly, favor indexes over individual stocks, and avoid high leverage. The more volatile the market, the more important it is to stick to position discipline. Stay in the game, and you’ll be there for the next wave.
