After experiencing a month of violent volatility, the US stock market is at a critical crossroads. On the one hand, data from institutions like JPMorgan indicate that the deleveraging process in the tech sector, which has continued for several months, is nearing completion, with leveraged ETFs, hedge fund net exposure, and CTA positions all significantly declining from extreme levels. On the other hand, inflation concerns are resurfacing, and the interest rate outlook is uncertain, with doubts about the returns on AI capital expenditures still lingering.

FACT BOX

  • Source: PR Times
  • Category: Survey