(AI Narrated) This episode of the GAR Capital Podcast is sponsored by GAR Labs and its custom trading system development services.
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In today’s GAR Capital Market Intelligence Report, we examine a volatile session defined by another sharp artificial-intelligence unwind, renewed conflict in the Middle East, a divided Federal Reserve, and the return of the bond vigilantes.
SK Hynix reported record results but still disappointed investors, triggering another violent decline across Korean technology stocks, memory companies, and the broader semiconductor complex.
We break down why the KOSPI found support near its 200-day moving average, how hedge funds produced the largest three-day technology long-selling event in Goldman’s records since 2016, and why the momentum drawdown may be approaching historic extremes without yet confirming a durable bottom.
The episode also examines a renewed escalation involving Iran-aligned forces, United States troops in Jordan, and Saudi energy infrastructure.
Crude oil surged approximately 7 percent after coordinated United States and Saudi strikes against Iran-aligned targets in Iraq, while falling United States crude and Cushing inventories intensified concerns about physical supply.
We then analyze the Federal Reserve’s decision to hold rates at 3.50 percent to 3.75 percent in a nine-to-three vote, with three officials favoring an immediate increase.
Although the decision was initially dovish relative to market pricing, Chair Kevin Warsh delivered a hawkish message and warned that the committee would not hesitate to act if inflation remained elevated.
The bond market responded dramatically.
The two-year yield fell while the thirty-year yield surged above 5.21 percent, producing a massive steepening of the Treasury curve and signaling that long-term investors may be losing patience with the Federal Reserve’s approach.
We also cover the weaker dollar, gold’s sharp advance, Bitcoin holding above $64,000, and unusually light positioning across the Magnificent Seven ahead of major earnings.
Finally, we examine Microsoft’s stronger after-hours reaction, Meta’s decline on higher capital expenditure and cautious guidance, and Arm’s weakness despite revenue beating expectations.
The Federal Reserve delayed tightening.
The bond market did not.
The AI trade may be approaching a cleaner entry point.
It must first prove that the fundamentals can survive higher oil, higher long-term yields, and a rapidly changing financing environment.
