US stocks and A-shares plunged again.

Let's first look at the logic behind this sharp decline, then discuss what to do next.
First, the PCE data released by the US yesterday was generally in line with market expectations, but core inflation remains high, indicating that inflationary pressures haven't truly eased. At the same time, the US Q1 GDP data was significantly revised upward, showing the economy performed much stronger than expected. These two factors combined have once again dampened market expectations for a Fed rate cut and accommodative policy.
For the current market, such changes easily trigger quantitative and algorithmic trading. Many programs automatically adjust positions based on macroeconomic data, and once they identify bearish signals like "expected rate cuts fading" or "overheated economy," they quickly sell off risk assets. That's why we saw the indices dive rapidly at first.
Notably, however, after the decline, US stocks quickly staged a recovery during the trading session, indicating that there was no true panic selling. It was more of a fluctuation amplified by sentiment and programmatic trading.
What truly pressured stock index futures again after hours were sudden external events. Reports emerged of an attack on a merchant vessel in the Strait of Hormuz, rapidly escalating geopolitical risks. At the same time, South Korea's KOSPI triggered a circuit breaker, Japan's Nikkei also fell significantly, and risk sentiment in Asian markets fully cooled, further suppressing global stock market performance.
Although the overall drop looks scary, if you carefully examine the market internals, you'll see that the true AI theme hasn't been broken; it's just rotating. Funds haven't left AI—they're just shifting between different sub-sectors. From computing power and chips to software and applications, every pullback brings new capital inflows.
So, the most important thing now is not to be intimidated by the index declines, but to see where capital is truly flowing. Many panic when they see indices falling, but quite a few funds are using the correction to accumulate core AI assets at lower levels.
Remember this one sentence: The biggest rhythm in the current market is still to firmly hold onto the AI theme. As long as this industry logic hasn't fundamentally changed, every release of sentiment could be creating opportunities for the next rally.