Tech’s stretched state and dwindling rate cut hopes spell market caution.

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Have you heard about Micron’s latest AI venture? It’s being hailed as the next big thing in the tech world, and for good reason. Among the various asset bubbles we’ve seen since 2021, this one seems to have some solid footing. But before we get too carried away, let’s take a closer look at what’s been happening in the tech sector.

Nvidia and Meta (formerly known as Facebook) have been dominating the scene lately, leaving other tech giants like Tesla and Apple in the dust. With impressive year-to-date gains, it’s clear that investors are placing their bets on AI-focused companies. But here’s the kicker – while Nvidia and Meta soar, Tesla and Apple are taking a bit of a beating.

Now, let’s shift our focus to the ever-ominous topic of interest rates. There’s been quite a buzz about potential rate cuts in 2024, but recent trends suggest otherwise. Trade interest for “no rate cuts in 2024” has surged, indicating a shift in market sentiment. What’s more, initial expectations of multiple rate cuts have dwindled, with less than three cuts now anticipated for the year.

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So, what does all of this mean for investors? Well, it seems that the tech sector may be stretching itself a bit too thin, while hopes for rate cuts dwindle. This combination could spell trouble for the market ahead.

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