The Kobeissi Letter posted on X that U.S. stocks have experienced a significant decline, erasing nearly $800 billion in market capitalization. This downturn is attributed to growing fears surrounding artificial intelligence (AI) disruption and the resurgence of trade war headlines.
Investors are increasingly concerned about the impact of AI on various industries, which has led to heightened market volatility. Additionally, renewed tensions in trade relations have further exacerbated the situation, contributing to the substantial loss in market value.
The combination of these factors has created uncertainty in the financial markets, prompting investors to reassess their strategies. As the situation develops, market participants are closely monitoring any updates related to AI advancements and trade negotiations.