This MoneyShow MoneyMasters podcast features Larry McDonald, author of How to Listen When Markets Speak and founder of The Bear Traps Report, who warns that the AI boom may be reaching a breaking point. He points to rising financing pressures, weakening credit conditions and extreme S&P 500 concentration, and says the bond market may be signaling trouble ahead. McDonald argues the Nasdaq could face a 20–30% decline, with risks flagged around Nvidia (NVDA), Apple (AAPL), Meta (META) and OpenAI, and says the Fed may struggle to raise rates. He also discusses opportunities outside technology, including energy, natural gas, coal, gold and silver.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
artificial intelligenceNasdaqS&P 500bondsFed
Open a keyword to see other news on the same topic.
Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 725.61 |
| Change that session | +0.60% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.31 |
| Change that session | +0.34% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Stock Market Today, Oct. 26: AI Optimism Lifts Nasdaq as Tech Stocks Rebound
The S&P 500 gained 0.70% to 7,677, the Nasdaq Composite rose 0.82% to 26,169, and the Dow Jones Industrial Average edged up 0.28% to 52,362 as AI optimism returned and oil prices fell. Gold rose 0.46% to $4,026.30 and the 10-Year Treasury yield rose 0.04% to 5%, with investors favoring Real Estate and Technology while Communication Services faced selling pressure. Anthropic filed its S-1 to list on the Nasdaq under the ticker "ANT," and its strong revenue growth figures eased fears that the AI boom was losing steam, helping revive tech stocks. Tesla rose over 5% after Barclays upgraded the stock to Overweight and raised its price target from $370 to $450, while Meta fell about 2% after disclosing plans to raise up to $95 billion for AI infrastructure. Investors are now looking ahead to Microsoft's earnings and the Federal Reserve's rate decision this week.
- Stock Market Midday, Oct. 16: Tech Stocks Slide as Investors Rotate Into Defensive Sectors
As of 11:37 AM ET, the S&P 500 fell 0.34% to 7,718, the Nasdaq Composite dropped 1.09% to 26,419, and the Dow Jones Industrial Average rose 0.29% to 52,327 as investors rotated out of tech into defensive sectors. Gold rose 0.17% to $4,177.51, the 10-Year Treasury yield slipped to 5.08%, and energy stocks led sector gains while technology and communication services lagged. Tesla shares surged early after it revealed a redesigned Roadster using SpaceX technology but erased those gains by midday, Hut 8 tumbled 7% after on-chain data showed large Bitcoin transfers to exchanges, and Netflix fell 2% after a change in its content leadership. The Nasdaq is extending its weekly decline as chipmakers such as Intel and AMD face the rotation, while CoreWeave dropped almost 10% and is down 23% over the past five days on AI debt concerns. Investors are watching Fed Chair Kevin Warsh's Bangkok speech for hints on a possible rate hike, though he was tight-lipped on further tightening, and borrowing costs remain on many radars.
- US stock indexes off to mixed start as tech sector weighs on market
US stocks fell Friday as a broad tech sell-off pushed the S&P 500 down 1.1% to 7,659.44 and the Nasdaq down 2.1% to 26,140.03, capping the market's worst week since late June. Chipmakers led the decline, with Micron, AMD, Broadcom and Intel falling 4.5% to 6%, as investors worry about how long the AI spending boom will last and whether tech firms can keep borrowing. The 10-year Treasury yield eased to 5.09% from 5.10%, after topping 5.30% earlier this month, while CME data showed traders see a 74.3% chance of a Fed rate hike in December, up from 50.2% a month earlier. Brent crude rose 3.7% to $109.86 a barrel as the Iran war and concerns over the Strait of Hormuz kept supply under pressure.
- US stock indexes off to mixed start as tech sector weighs on market
U.S. stocks fell Friday as a broad tech sell-off pulled the S&P 500 down 1.1% to 7,659.44, leaving it about 2% lower for the week and erasing gains from a record high set last week. The Nasdaq dropped 2.1%, its first weekly loss in five weeks, as chipmakers Micron, AMD and Intel fell between 5.6% and 6% amid worries about how long AI spending can be financed through borrowing. The 10-year Treasury yield eased to 5.09% but had topped 5.30% earlier this month, its highest since 2002. Traders now see a 74.3% chance of a Fed rate hike in December, up from 50.2% a month ago. Brent crude rose 3.7% to $109.86 a barrel as there was still no deal between the U.S. and Iran to end the Iran war.
- How major US stock indexes fared Friday 10/30/2026
Tech stocks sold off again on Friday as worries grew that AI enthusiasm had pushed prices too high, and Intel sank almost 29% after a weak profit forecast. The S&P 500 fell 1.8% to 7,580.07, its worst day since June, while the Dow dropped 1.1% and the Nasdaq Composite fell 2.9% to 25,437.00. Amazon's profit report added to concerns about AI spending, and Treasury yields fell as investors sought safer assets even though oil prices rose. For the week, the S&P 500 was down 0.6% and the Nasdaq down 2%, while the Russell 2000 gained 1.3%. Year to date, the S&P 500 is up 10.7% and the Nasdaq up 9.4%.
- US Equity Indexes Close Mixed This Week as Investors Rotate into Treasury Bonds, Defensives as AI Trade Falters
Related markets
Latest news
- Veteran fund manager revamps Alphabet stock price target after brutal sell-off
Alphabet shares plunged after disappointing earnings, but a veteran fund manager still sees reasons to be positive on the Google parent. The manager has revised the stock's price target following the sharp sell-off.
- Why CareDx Stock Soared Today
CareDx shares (CDNA) rose more than 22% on Friday after the medical diagnostics provider reported strong third-quarter growth. Revenue jumped 39% year over year to $139 million, driven by a 65% increase in testing services revenue to $119 million, while testing volumes climbed 51% to 75,900 after the July acquisition of cancer blood-test maker Naveris. Patient and digital solutions revenue rose 31% to $20 million, and EBITDA doubled to $30 million. For full-year 2026, CareDx now expects revenue to grow about 38% to $525 million and has raised its adjusted EBITDA target to $90–100 million from $66–78 million. CEO John Hanna said clinicians want actionable molecular information about patients' disease status to inform treatment decisions.
- Meta outlook revised to negative by S&P on cash flow and capex concerns
S&P Global Ratings revised Meta's outlook to negative while keeping its AA- rating, citing uncertainty over elevated capex and negative free cash flow tied to AI spending. Meta expects full-year capex of $135–145 billion and posted negative free cash flow of $2.12 billion in its third-quarter report, its first time in the red. S&P expects capex growth to start flattening from 2028 but is less certain Meta will curtail spending as previously anticipated. Meta shares fell 7% after earnings and 15% in October, the worst month in four years, and the company plans to raise $95 billion, including $35 billion in underwritten public equity offerings and $60 billion through an at-the-market program. A Meta spokesperson disagreed with S&P's view of its AI monetization, saying its infrastructure will open new revenue streams.
- Prediction: This Is the Quantum Computing Stock Most Likely to Still Be Standing in 2030
The article cites Gartner's forecast that by 2030, over 50% of quantum computing start-ups will go out of business as viable commercial revenue runs out, and the author predicts IonQ (IONQ) will be one of the few pure-play quantum companies still standing in 2030. IonQ's trapped-ion technology delivers high fidelity, and its second-quarter revenue of $80.1 million was nearly double the combined Q2 sales of all other pure-play quantum computing companies; it also advanced to the final round of DARPA's Quantum Benchmarking Initiative. IonQ forecasts 2026 revenue of $450–460 million, up from $130 million in 2025, helped by its acquisition of SkyWater Technology. IonQ ended Q2 with $3 billion in cash, cash equivalents and investments, but its Q2 expenses rose to $417.3 million from $181.3 million in 2025, and its trailing-12-month free cash flow was negative $570.2 million. The author argues that if IonQ meets its sales target and keeps growing, its cash could fund operations into 2030, though it must turn free cash flow positive to avoid further shareholder dilution or additional debt.
- This cybersecurity stock will be the next to join the S&P 500
Okta is set to join the S&P 500 on Wednesday, replacing Kenvue.
- Cramer's week ahead: Expect more volatility as tech earnings, midterms loom
CNBC's Jim Cramer warned volatility may not be over after a turbulent week in which tech shares fell on renewed concerns about the AI trade, and said it was too early to call a bottom in the Nasdaq. The Nasdaq Composite rose 2.3% through Wednesday before dropping 2.9% Friday to end the week down 2%, while the S&P 500 finished down 0.6% and the Dow Jones Industrial Average down 0.9%. The coming week brings the midterm elections, earnings from Palantir, Apple, AMD, Pfizer, Amgen, CVS, McDonald's and Kimberly-Clark, and the monthly jobs report on Friday. Cramer said Apple's valuation of almost 40 times earnings leaves little room for disappointment, but he would still own the stock.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.