Opinion: US stocks could crash suddenly without warning, possibly triggered by high-leverage ETFs and uncertainty surrounding AI.

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Mars Finance News, June 25 - Tonight, U.S. stocks opened higher and then fell, with the Nasdaq 100 dropping 1,000 points in 27 minutes without any major news. The S&P 500 erased $1 trillion in market capitalization, quickly turning from +1% to -3% after the open. Reviewing pre-market information, the U.S. PCE inflation rose to 4.1% (the highest since April 2023), coupled with Apple announcing a price increase of up to 25% for Mac and iPad due to soaring AI chip costs, causing Apple's stock to instantly fall nearly 6% and erase $220 billion in market value, triggering panic selling. However, these messages seem insufficient to cause such a rapid market decline. The Kobeissi Letter believes that the widespread high-leverage ETFs, AI uncertainty, and massive crypto liquidations in the market are the main reasons for the heightened volatility, and it expects market volatility to continue.
NAS100-1.32%
US500-0.70%
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