Yes, markets are down—but that’s only part of the story.
The S&P 500 just slipped into correction territory, and the news cycle is fanning the flames. What’s driving the volatility? Are there any silver linings out there?
In this short video, I explain what’s behind the recent dip, and why a diversified portfolio still stands strong.
A quick video about the market correction and three takeaways.
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After reaching more new highs recently, markets have pulled back and gotten choppy. (1)
Let's break down what's happening and why it matters.
What's driving recent volatility?
Concerns about the impact of inflation and tariffs on consumer sentiment are one major driver. (2) If Americans lose confidence in the economy, they may pull back on spending, which is the biggest driver of economic growth.
After reaching new record highs in recent weeks, markets fell earlier this week on worries that cheaper AI competition from China could pose risks to U.S. tech companies. (1) What caused the market reaction.
Let’s dive in.
What caused the tech market to move lower?
Much of the market run-up over the last two years has been driven by AI mania, with U.S. companies leading the charge. However, this narrative faced a test when DeepSeek, a Chinese tech startup, released an advanced (much cheaper) AI model.
