CPI Exceeds Expectations, U.S. Stocks Come Under Broad Pressure! Has the Most Dangerous Moment for AI Tech Stocks Arrived?

With U.S. CPI exceeding expectations, U.S. stock investors are once again calculating interest rates.
October headline CPI rose 0.4%, while core CPI rose 0.3%, both above market expectations.
For U.S. stocks, the issue is not just higher inflation, but that markets are starting to worry the Fed may continue tightening monetary policy.
Why are tech stocks especially sensitive?
Because many high-growth companies, especially AI firms, have valuations based on revenue and profit growth over many years in the future.
When Treasury yields rise, the discounted value of future cash flows may fall, naturally making high-valuation stocks more vulnerable.
It is like investors who were willing to pay a high price for a company's ten-year dream suddenly realizing that the cost of capital has risen, so the dream must be discounted again.
But don't treat all U.S. stocks as one entity. Companies with stable cash flows and strong profitability may perform very differently in response to interest rate changes from companies that depend on long-term growth expectations.
My view is that the risk of volatility in U.S. stocks is rising in the short term, with particular caution warranted for high-valuation tech stocks.
AI may change the future, but interest rates will change today's valuations first.$SPCX

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