The most striking thing in U.S. stocks this week was probably Thursday’s plunge😇

$QQQ slid from near 700 at the start of the week to a low around 640, then closed near 658, down about 5.7% for the week

The Nasdaq 100 plunged about 6.4% in a single day on Thursday, and nearly the entire AI supply chain came under selling pressure!

The market had been discussing AI’s growth potential, but now investors are starting to ask another question:

When will massive capital spending translate into enough profits?

Uncertainty over data center regulation stemming from the midterm elections has further amplified these concerns

Tech stocks rebounded on Friday, with AMD, Nvidia, and others recovering some ground, but the overall structure remains weak;

More troublingly, stronger-than-expected nonfarm data reinforced market bets on Fed rate hikes

I’m in no rush to look for a reversal next week: the key thing to confirm now is whether Friday’s gains can continue. At the very least, the market needs to show that Thursday’s concentrated sell-off is largely over