Three converging risks leave AI trade with little margin for error, Citadel Securities says
Citadel Securities warns the AI trade's margin for error is razor-thin as doubts over returns, political pushback and a costlier macro backdrop converge.
US stock indexes rose Monday as Anthropic filed for an IPO targeting a valuation over $1.5 trillion.
The main US equity indexes ended the session with these changes:
Monday brought a partial reversal of the recent market selloff as investors awaited major earnings from Microsoft, Alphabet and Amazon this week, as well as the FOMC decision. A catalyst was Anthropic's IPO filing, with the company reportedly expected to attempt raising $100 billion at a valuation of more than $1.5 trillion, with a target date of November 16.
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Citadel Securities warns the AI trade's margin for error is razor-thin as doubts over returns, political pushback and a costlier macro backdrop converge.
Magnificent 7 stocks show divergent moves ahead of earnings from Microsoft, Alphabet and Amazon; Nvidia and Tesla rise while Meta, Apple, Alphabet fall.
China's AI stock bubble burst, wiping out $480 billion as the STAR50 fell 40%. US Big Tech earnings this week may indicate if America faces a similar selloff.
OpenAI released GPT 6.1 Terra, a cheaper, more efficient model, while Anthropic filed for an IPO.