The global market experienced a synchronous fall on Tuesday, with a fall in technology and a drop in gold, silver and encryption assets. The fall was not triggered by a single event, but by the weakening of the AI chip plate, the late-season agency's silo, the Fed's hawk's expectation and Japanese yen intervention concerns, which simultaneously tended to reduce risk preferences.
AI, the chip plate is weak first.
Market sales first appeared in the AI semiconductor chain. It was reported that SK Hercules could slow down the expansion plan, allowing the market to begin re-assessing its earlier high growth expectations of AI demand. Concerns were rapidly transmitted to the South Korean stock market, which added to the high leverage of local investors, magnified the decline and the Korean composite equity index was clearly under pressure.
At the end of the season, we'll have extra sales pressure.
In addition to the block factors, the rebalancing of institutional funds by the end of the season has increased market pressure. The report mentions that global equities may face sales of up to $165.0 billion. Such accommodations are usually concentrated at the end of the quarter and are susceptible to continued pressure on otherwise fragile market sentiment.
Against this background, the Science and Technology Unit has become the main downward trend, and other volatile assets have suffered. The weakening of encrypted assets in tandem with equities suggests that funds tend to lower overall risk exposures first rather than simply repositioning the single market.
The Fed traded with Japanese yen into two major variables.
The market is also digesting more hawk expectations. Maintaining high interest rates or further high rates weakens the attractiveness of risk assets and increases the cost of holding high-valued assets.
Another factor that received close attention was the possibility of Japanese intervention in the yen. Once the yen arbitrage is disturbed, investors may be forced to level off shares, large commodities and other asset positions at the same time, thus triggering a wider cross-asset sale.
Cash demand overstretched need for protection.
It is worth noting that assets such as gold and silver, which are often considered to be safe, are not on their own. According to the report, this reflects the fact that some investors are increasing their cash ratio and reducing their leverage, rather than simply turning to traditional risk-averse assets.
Next, the market will observe whether sales pressure will ease after the end of the season, and whether new signals from major central banks will stabilize risk preferences.