PremiumKimi, Kuwait, & Korean Chaos Cap Ugly Week For Tech; Oil Jumps Most Since Start Of War
Tl;dr: A busy week of macro (inflation inflected lower, growth steady, Warsh hawkish), was dominated by various headline catalysts impacting market narratives: Peace-premium (endless escalation culminating with Iran attacking Kuwaiti water and power plants in counterstrikes against the US), AI Spendaholics (China's 'low cost to build' Kimi from Moonshot crushes the 'expensive' American dream), & Semis to the Moon (Korean retail wakes up to the downside of leverage). By the end of the week, stocks were down led by Nasdaq (Semis/Momo ugly), bonds were bid (rate-hike odds tumbled) despite oil's biggest week since war started. The dollar and gold were weaker, bitcoin managed to end unch.
China saved America's bacon (and its own) with its crude market stabilization, but is now exposing the flaws in a US economy driven almost entirely by current and anticipated (over)-spend on AI...