Concerns about AI spending returns and upcoming Fed rate decisions are creating market uncertainty and restraining price action.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"Wall Street's bullish start to August comes after the stocks were battered in July amid a sharp selloff in AI stocks... The AI worries still loom over the market, with South Korea's Kospi, which is being seen as the face of the massive upswings and downswings of the AI trade, falling sharply."
"While traders had largely expected the Fed to hold rates steady, some investors had seen the possibility of a surprise hike. Prominent voices, like Citadel Securities, were betting on an increase. On Tuesday, Broker Marex had facilitated a US$600,000 block trade on the "yes" contract on Kalshi - betting on an interest-rate increase Wednesday."
"With investors worried about AI spending and lack of return on those investments, next week's rate decision by the Federal Reserve and earnings from several of the Magnificent Seven, today will probably be relatively tame."