Summary
- The stock market possibly started a prolonged downturn, with a nearly 5% crash in the Nasdaq 100 on Friday.
- The Fed is now expected to hike two times by April 2027, due to 1) an energy-driven inflationary shock and 2) a possibly overheating economy—that’s the crash trigger.
- The Broadcom earnings report points to the peak AI capex growth, and that’s the AI bubble crash trigger, especially when combined with the expected Fed hikes.
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