PremiumZuck'd: Tech Wrecks As AI Credit Cracks Widen; Bonds Panic-Bid, Bitcoin & Bullion Battered
Tl;dr: The sudden realization that FCF matters (we've only been pounding the table for a year on the funding constraints), prompted a further surge in AI-related CDS spreads (finally awakening equity bulls from their blinkered reality - supply of funding trumps endless demand for increasingly cheaper tokens), with META the poster-child for today's pummeling (negative FCF), dragging NDX (& SPX) down bigly (DOW, RTY steady). On top of a puke in Paris, USTs were panic-bid (less AI supply pressure, growth scare, safe-haven flows from EU chaos, CTA short squeeze) even as oil surged (more Houthi attacks, US/Israel planning new attacks). The dollar dipped while gold and bitcoin were battered.
A bad day for tech bros (and fomo chasers) and bond vigilantes (and CTAs)...