Market sentiment has shifted, and a small news event can trigger a huge wave.

What happened last night? Financial media reported that a certain tech giant will no longer support a $10 billion data center financing. The news sounds minor, but the market reaction was another story — related stocks plummeted over 5%, and global markets followed downward. U.S. stocks declined across the board, with the Nasdaq dropping 1.8%, and the entire AI ecosystem fell nearly 9% over the week. Bitcoin briefly broke the critical support at $85,000.

Is this event really that serious? Not necessarily. But the way the market reacts reveals the underlying issue.

**Market sentiment has already changed.** Investors are no longer willing to buy into the AI concept unconditionally. Any slight fluctuation related to AI assets causes them to fall first. Even official clarifications afterward had no effect — because people's minds have already shifted. Assets once regarded as faith are now treated as ordinary risk assets. It’s like an infectious disease: once the label changes from "must hold" to "possibly toxic," the market’s response is: sell first, ask questions later.

**No sign of substantial buying support.** The Nasdaq and S&P 500, two market barometers, both broke below their 50-day moving averages. According to technical analysis, this line should act as support. But what happened? It was pierced directly. The hand holding the floor gave up. The market isn’t dead, but its defenses are indeed weakening.

**This decline was probably overdue.** We mentioned in yesterday’s analysis that today’s volatility might surpass that of yesterday’s Non-Farm Payrolls report. In other words, the fluctuation on a normal trading day could be greater than on a major data release like Non-Farm Payrolls. Just think how absurd that logic is.

**What we should really be wary of is the out-of-control crypto market.** The plunge of Bitcoin and Ethereum can be understood — that’s rational re-pricing. But Bitcoin jumping from $86,000 to $90,000 in one minute, then crashing back down? That’s not trend trading; it’s leverage and various players trampling over each other. That’s the most dangerous signal.