Suddenly, the Stock Market Is at a Crossroads

Market correlations are reversing course.

Key Takeaways

• Rising Cost of AI Usage Causing Markets to Rethink: What drove Tuesday’s AI-led selling (which has extended overnight)? Don’t blame oil prices or yields. What happened was the not-so-constructive news flow: A data center project was paused, while a bearish report on opticals hit those stocks. Concerns are mounting that businesses are balking at AI usage costs.