The News Dropping The Market Right Now?!
In a Nutshell
Markets are falling in after-hours trading on a Reuters report cutting Anthropic's expected IPO valuation from $2T to $1.5T, dragging QQQ, CoreWeave, and other AI-related stocks lower. Bitcoin is also down, but its drop started before the Anthropic news and appears tied to a separate MSCI index change. Traders are urged to keep position sizes small, avoid leverage, and wait for clearer signals when futures reopen at 3 PM Phoenix time.
These notes were generated by AI and may contain inaccuracies.
Markets are currently declining during extended trading hours or nighttime hours. The decline began approximately 5 or 6 minutes ago. A Reuters report issued at 1:57 p.m. Phoenix time indicates investors are lowering their valuation of Anthropic's expected IPO from around $2 trillion to $1.5 trillion, citing disappointing results and widespread selling.
The QQQ fund is down about a third of a percent at $725. CoreWeave's stock fell nearly two percent, with chip stocks following suit. Futures contracts are currently on a break between 5 and 6 AM Eastern Time, so none of this has been priced in yet. Trading will reopen at 3:00 PM Phoenix time.
The Reuters report is described as noise in a weak after-hours market, adding to the unease that has plagued artificial intelligence stocks. The initial drop may be exaggerated, but the real test is at 3:00 when futures contracts reopen. A strong reaction to the Anthropic news story would indicate that the anxiety is real rather than a passing reaction.
Kevin Warsh's speech is scheduled for 8:30 tonight. If he appears hawkish along with valuation doubts, it will lead to a second downward wave. If it is neutral, this effect is likely to fade away.
Bitcoin has also dropped, but this is a separate story from the artificial intelligence concerns. The Bitcoin decline actually began about 9 minutes before the Anthropic headline. A cryptocurrency-related item appeared at 2:01 when "Watch Guru" reported that MSCI is removing Michael Saylor's strategy from its indices, though this is not yet confirmed.
The same risk aversion affecting both markets is driving the declines. Discord updates are needed to ensure the team understands that the Anthropic valuation adjustment is what's driving the markets down. An LPP news section is being added for team updates.
CoreWeave moved in a very erratic way, with a 16.7% upward move from its lows to its highs in a single day, at a time when there are still concerns about funding. The AI sector appears unsettled due to news regarding CoreWeave. Markets may get worse before they get better.
Pay attention to the size of financial positions. There are many opportunities to buy when the price is low. Do not buy too much too early, which could lead to regret later due to stress or overly emotional decisions. Do not use leverage, especially when the trend is highly uncertain.
Live trading sessions are broadcast every morning when the market opens. The cost is $1.30 per day. The second link in the description provides access to watch the live trading sessions.
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