Black Tuesday—now the reason for the citywide plunge has been found!

The pullback this time was mainly driven down by three factors:

① News related to lithography equipment brought external competitive pressure.

② Nvidia’s $750 billion AI infrastructure deal sparked market concerns. Its credit default swap costs surged significantly, and the market began to grow alert—risks are lurking behind large-scale expansion. There are many cross-investments across the AI industry chain, and business linkages are becoming stronger. Once financing tightens and corporate earnings fail to meet expectations, risks can easily pass from one link to the next. Nvidia fell by about 5% overnight.

③ Multiple uncertainties stack on top of each other. On Wednesday, the Federal Reserve’s policy decision leaves the possibility of further rate hikes, and it also coincides with a dense wave of earnings reports from large tech stocks. Many funds choose to pull out early before the earnings are released. At present, the market broadly questions whether the AI’s massive spending can really turn into returns. Even if the earnings reports look impressive, the stock price may not necessarily reflect it. With multiple negative factors resonating together, risk appetite has been clearly suppressed.

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