Nasdaq plunges + AI not making money, is the tech stock market about to collapse?

The U.S. stock market, especially the tech-heavy Nasdaq index, experienced a significant decline, with the Nasdaq dropping 1.46%. Behind this, the market holds strong hawkish expectations for Federal Reserve Chair Powell's upcoming speech at the Jackson Hole central bank conference, fearing he may signal maintaining higher interest rates for longer, which directly raises borrowing cost expectations and pressures valuations of interest-rate-sensitive tech stocks. Meanwhile, although the U.S.-Russia Alaska summit discussed the Ukraine issue and released some easing signals, this "productive" talk did not result in a substantive agreement, and the resulting geopolitical risk premium decline (especially reflected in energy prices) provided limited support for tech stocks. The market remains aware of the "uncertainty" of geopolitics and its potential complex impact on inflation.

Currently, the upside potential for tech stocks may be limited. On one hand, market confidence in AI commercialization has been shaken, with reports showing that the vast majority of AI projects fail to generate measurable profits, raising concerns about a bubble in the sector. On the other hand, interest rate expectations remain a sword hanging over tech stocks. Even if a September cut is highly likely, if Powell's remarks lean hawkish, emphasizing "data dependence" without committing to an easing path, U.S. Treasury yields may remain high, continuing to pressure overvalued growth tech stocks.

In this environment, capital may seek other allocation directions. The cryptocurrency concept is worth watching, as its correlation with traditional financial markets is sometimes low, and it may show differentiated performance under specific market conditions. At the same time, if geopolitical tensions ease further or the Fed's policy path becomes clearer, a rebound in market sentiment could also drive its recovery. Investors should monitor developments in related areas as potential options for diversifying portfolio risks.

By the way, the story about East Buy yesterday was really well-told, and today it rose again, as did NVIDIA.

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