The trigger for this round of correction has been identified— a certain tech giant Oracle's earnings report fell short of expectations, plunging 13% before the market opened, instantly igniting concerns about an AI bubble. The US stock market continued to decline in overnight trading, and the crypto market unsurprisingly followed suit.

Ironically, just a day earlier, Powell was publicly supporting the prospects of AI with various optimistic statements, only for a single earnings report to crush the sentiment back to reality. Does the market believe in fundamentals or in sentiment? This question probably hasn't been clearly thought through even by Wall Street itself. Typical good news is ignored, while bad news is magnified under the magnifying glass.