With Fed QT (Quantitative Tightening) running at a pace of $95 billion a month and the Treasury forecasting its cash balance to rise by $200 billion into year end, that amounts to a squeezing of liquidity that alone implies an 8% drop for the S&P 500 by the end of December, according to their model.
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Semiconductor Stocks Extend Sell-Off as AI Valuation Concerns and Chinese Competition Weigh on Sector
Semiconductor stocks remained under intense pressure on Friday as investors continued pulling back from one of the market's strongest-performing sectors, extending a steep correction fueled by valuation concerns, rising AI infrastructure costs, and rising competition from China.
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