Yesterday, US stock indexes fell by 1.65-2% in anticipation of official data from the unlocked US government.

The US stock market was sold off yesterday after CTA and many other technical players took profits, with stops triggered. And the lower the market fell, the more stops it triggered.

AI-related stocks were the hardest hit. The S&P 500 closed down 1.66% on Thursday, the Dow Jones Industrial Average fell 1.65% and the Nasdaq 100 fell 2.05%.

U.S. stock indexes fell on Thursday on concerns that economic reports delayed by the government shutdown, which are due soon, will be weak enough to allow the Federal Reserve to continue cutting interest rates. Weakness in chipmakers and a drop in the Magnificent Seven technology stocks on Thursday also weighed on the broader market.

Cryptocurrency prices also fell sharply: Bitcoin fell by 6.5% to $96,600, and Ether fell by 10% to $3,180.

Analysts are calling this a technical correction in AI companies, although some traders expect a more significant correction in AI company stocks of 10-20%.

The market is losing faith in a soft Fed, which means it is not expecting easy liquidity. The chances of a rate cut in December fell from 63% to 51% yesterday, while they were 95.5% a month ago.

This became a great trigger for selling off the most liquidity-sensitive topics – cryptocurrencies and AI.

At the same time, market participants are increasingly afraid of a weakening US economy. These are two opposing fears – because if the US economy weakens, the Fed gets a reason to lower rates.

Amid the decline and sell-off in the stock, some of the funds flowed into commodity futures, so agricultural product contracts became more expensive, but today the USDA report will be released, which may also bring a surprise to the markets.