Yesterday's market split was quite interesting—Dow Jones +0.6% hitting a new all-time high of 51,999.67, while the Nasdaq fell -1.15%, and the S&P 500 was nearly flat at -0.57%, but the financial sector was leading the rally.

In short, it's one sentence: AI chip stocks are taking a hit again. The uncertainty before Warsh took office, combined with the memory of the $1.3 trillion AI chip crash in early June, caused institutions to reduce their most expensive positions before the FOMC, seeking safety in high-yield financial stocks.
This kind of "Dow hitting new highs / Nasdaq plunging" tearing market I have only seen once before, in December 2018. That time, Powell was hawkish, and the market fell for three consecutive months. Whether it will repeat this time is anyone's guess, but at least it shows one thing—the market no longer believes the phrase "AI stocks only go up and never down."
If Warsh adopts a dovish stance at tonight's FOMC, the Nasdaq is likely to catch up; if he continues to act hawkish, the Nasdaq might give back all of last Monday's gains. I don't take sides; I wait for the market to play out on its own.
‍#NVDA #AI #纳指