U.S. stocks plummeted, is the AI myth coming to an end? Let's talk about the opportunities and strategies in this wave of volatility

Recently, the drop in U.S. stocks really made many friends feel uneasy. The Nasdaq plunged 4.18%, and the S&P 500 also fell 2.46%. Everyone is asking, is this the end of the bull market in U.S. stocks, or is it time to buy the dip? Today, let's have a good chat—this isn't as simple as it seems.
First, let's talk about why it fell. Many think it's a black swan event, but that's not quite right. When the May non-farm employment data came out, it showed an increase of 172k jobs, nearly twice the expected number. This indicates the U.S. economy is still quite hot, inflation can't be contained, and the Federal Reserve isn't thinking about cutting rates—on the contrary, the probability of rate hikes has surged to 60%. For high-valuation tech stocks, interest rates are a life-or-death line. When rates rise, the discount rate for funds goes up, and even if a company grows 20% annually, its valuation drops by 20%, so how can the stock not fall?
Next, look at the AI sector. Over the past two months, the Philadelphia Semiconductor Index has skyrocketed, driven by hedge funds leveraging more. Everyone's expectations for AI giants are too high—they want perfect growth, perfect demand, and perfect financing conditions. As a result, Broadcom's Q3 guidance was disappointing, and there were rumors of hardware downgrades for Nvidia's next-generation architecture, causing market confidence to collapse. Basically, expectations were too full before, and now it's time to pay back and correct.
There's also the issue of big companies raising capital. SpaceX plans to raise $75 billion, OpenAI and Anthropic are waiting in line, and Google and Meta are issuing bonds to fund AI infrastructure. Just in June, over $172k was drained from the market, and the Federal Reserve is still shrinking its balance sheet—this isn't just bloodletting; it's marrow extraction. To fund new projects, funds have to sell off large-cap tech stocks. How can U.S. stocks not fall?
So, what should we do? In the short term, before the Federal Reserve's interest rate decision on June 18, the market is likely to fluctuate and correct. Don't hold too many hopes for those overgrown growth stocks (like semiconductors and AI). Instead, look at defensive, stable assets. Long-term, if the underlying logic of AI hasn't changed and the core giants' computing power barriers remain, this correction is healthy. High-quality leaders might even hit new highs by the end of the year.
Finally, I want to say that investing shouldn't just be about emotions; you need to understand the underlying logic. If you think buying a theme can keep rising and you don't want to learn how to operate, it's better to save some money or buy insurance—it's more reassuring. I hope everyone can stay steady during this volatility and seize real opportunities.