Krystal Ball

This was written over the weekend.

The market route leaves Wall Street bracing for rockier times.

investors have to confront the challenges from the latest inflation reading and SpaceX IPO in the days ahead.

Specifically, they show stocks, bonds, gold, Bitcoin.

Investors entered the new week battered by a market sell-off that left very few places to hide.

The route followed Friday's stronger-than-expected jobs report, which sheared 4.2% off the Nasdaq, sending investors racing to increase bets that the Federal Reserve will raise interest rates by year-end

and sparked a bond slide that lifted yields on treasuries to their highest level since early 2025.

That pressured shares of multinational and smaller domestic companies alike, and gold fell to its lowest levels on the year.

The tumble drew warnings from Wall Street that more turmoil lies ahead.

Ray Dalio of Bridgewater said this,

So the two...

things that caused the NASDAQ and stock market to go down significantly on Friday were the jobs market that came in a little bit stronger than normal.

Now, why would that matter?

Because it would mean that they believe that thus the Federal Reserve would have to raise interest rates.

Everything

from the AI stocks to the general rise had actually previously been bet on the fact that the Fed was gonna lower interest rates or at the very least keep them the same.

So when that reading came in, they immediately bet that their interest rate was gonna go up.

That's already crushing now multiple years of generally high interest rates.

How does that affect AI?

Basically, from what I've been able to gather, a lot of it is based on the construction and the CapEx costs for borrowing because they have to borrow all this money to build all these new data centers and for all these other things.