AI Bubble Fears Grow as Anthropic Prepares for an IPO

Chuck, Mike, and Tucker with you here, and as we sit here right now, markets are moving rapidly.

But as of this very particular moment in time, we've got mixed markets.

Uh, we opened significantly, uh, down on two of the three major indices.

Uh, the NASDAQ was off about one and a half percent at one point.

The S&P was down more than a half percent.

Uh, the NASDAQ now down just half a percent.

S&P is actually up, uh, about .15%, and the Dow, which doesn't have a lot of tech in it, is currently, uh, up about 1%.

So this happening against a backdrop of a hot CPI report yesterday, a hot producer price index report today, and just- Feeling hot, hot, hot.

Yes, yes.

Thank you, Michael.

And despite both of those, uh, bond yields have actually come down with the 10-year moving from 5.34% at one point early yesterday to 5.08 today.

At one point today, it was at 5.03, but yields have sold off a little bit in the last, uh, hour or so, uh, as we have, you know, gone through the trading day.

So we'll see how things move over the course of the day here, but this is, is what we are seeing in, uh, these markets right now.

It would seem to me, Chuck, there are two main stories that investors are latching onto.

One has to do with inflation concerns that investors have.

The second has to do with renewed AI bubble concerns that they have.

A- and I don't think, I don't think markets are moving convincingly in either direction on those two stories, uh, because they would tend to drag things in opposite directions.

Yeah, and, and so look, like, again, the other piece on this, remember, like, yields had just been screaming top side for the last month and a half.

At, at some point, you just run out of short-term sellers.

Mm.

And so some of this could just be, okay, like, hedge funds were all, like, in on that short trade, and now they had to unwind it, and so now you find, you know, a new equili- equilibrium, uh, you know, a- as you know, that, that sorts itself out.

So some of this was just...

Like, these markets were just crazy extended, uh, to the upside in the case of interest rates and, uh, the dollar in the short term.

And so maybe this is just a little bit of a re- a relief rally, and eventually the 10 year, you know, screams higher again to, like, five and a half.

We, we don't know, but I, I, I think that the story in the last two days at least is, hey, AI concerns and what it means for the US economy overpowering short-term inflationary concerns because the market at least is saying, "Hey, if AI dies, the US economy slows significantly, too-"

Chuck, Mike, and Tucker with you here, and as we sit here right now, markets are moving rapidly.

But as of this very particular moment in time, we've got mixed markets.

Uh, we opened significantly, uh, down on two of the three major indices.

Uh, the NASDAQ was off about one and a half percent at one point.

The S&P was down more than a half percent.

Uh, the NASDAQ now down just half a percent.

S&P is actually up, uh, about .15%, and the Dow, which doesn't have a lot of tech in it, is currently, uh, up about 1%.

So this happening against a backdrop of a hot CPI report yesterday, a hot producer price index report today, and just- Feeling hot, hot, hot.

Yes, yes.

Thank you, Michael.

And despite both of those, uh, bond yields have actually come down with the 10-year moving from 5.34% at one point early yesterday to 5.08 today.

At one point today, it was at 5.03, but yields have sold off a little bit in the last, uh, hour or so, uh, as we have, you know, gone through the trading day.

So we'll see how things move over the course of the day here, but this is, is what we are seeing in, uh, these markets right now.

It would seem to me, Chuck, there are two main stories that investors are latching onto.

One has to do with inflation concerns that investors have.

The second has to do with renewed AI bubble concerns that they have.

A- and I don't think, I don't think markets are moving convincingly in either direction on those two stories, uh, because they would tend to drag things in opposite directions.

Yeah, and, and so look, like, again, the other piece on this, remember, like, yields had just been screaming top side for the last month and a half.

At, at some point, you just run out of short-term sellers.

Mm.

And so some of this could just be, okay, like, hedge funds were all, like, in on that short trade, and now they had to unwind it, and so now you find, you know, a new equili- equilibrium, uh, you know, a- as you know, that, that sorts itself out.

So some of this was just...

Like, these markets were just crazy extended, uh, to the upside in the case of interest rates and, uh, the dollar in the short term.

And so maybe this is just a little bit of a re- a relief rally, and eventually the 10 year, you know, screams higher again to, like, five and a half.

We, we don't know, but I, I, I think that the story in the last two days at least is, hey, AI concerns and what it means for the US economy overpowering short-term inflationary concerns because the market at least is saying, "Hey, if AI dies, the US economy slows significantly, too-"