Dust returns to dust, earth returns to earth. Looking back now, was yesterday's "election-ending boot" market move just short-term noise?
The closing remark yesterday about not "popping champagne at halftime" unexpectedly became a prophecy. Today, I was delayed by various matters and couldn't update in time. I just spent an hour quickly searching through all current news. Actually, the logic remains the same as mentioned in Monday's macro framework.
This Thursday will see a "quadruple kill" of energy, employment, interest rates, and AI valuation. Except for the slowdown in energy, the others have not materialized yet. This is the fundamental factor. After the Democrats' comprehensive midterm election victory, they inevitably need to temporarily satisfy voters' wishes, especially since some candidates opposing data center construction won. Extreme rhetoric on AI regulation further shattered market confidence.
However, whether it's AI in the US stock market or crypto's #Bitcoin, the fundamentals remain healthy, and the mid-to-long-term trend remains certain. As mentioned earlier, yesterday was about trading the certainty after the election results landed. Starting today, trading officially begins on the expectations of changes brought by Democratic control of Congress on AI and crypto.
Next, we need to wait for the "quadruple kill" situation to gradually become clear, then the market will start digesting the variables brought by the Democrats. The market will naturally stabilize and then move into the next new trend.
As for the Democrats tightening AI regulation, it is inevitable and will help AI's mid-to-long-term development, reducing bubble risks. There's no need to worry about the Democrats directly restricting AI development because AI is America's national destiny and the core of the US-China arms race. The US leadership will not allow China's development to go unchecked. #美中期选举后AI监管分歧引发行情波动
Disclaimer: OKX Orbit content is provided for informational purposes only. Learn more
