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Hey, here’s the real story for today.
Equities Slip Into The Week
U.S. stocks opened the week under pressure. The market is still digesting last week’s selloff, the upcoming Nvidia earnings, and a messy backlog of economic data.
The S&P 500 moved lower for a third straight day, the Dow dropped more than five hundred points, and the Nasdaq slid as traders rotated out of crowded mega-cap positions. Volatility picked up as investors shifted toward cash-heavy, defensive names while trimming the biggest winners of the year.
It didn’t feel like panic. More like a long-delayed cooldown.
Buffett Backs Alphabet
Alphabet was the outlier. While most of tech took hits, Alphabet jumped after Berkshire Hathaway revealed a multibillion-dollar stake built quietly over the last quarter.
For decades, Berkshire largely stayed away from high-growth tech. A move into Alphabet signals something different: confidence in long-term cash flow, durable AI infrastructure, and attractive valuation relative to its peers.
Alphabet rallied sharply on the day and continued pushing toward all-time highs. When the most disciplined buyer on Earth decides a company is worth paying up for, the market tends to listen.
Crypto Gets Hit
Bitcoin and Ethereum extended their recent slide. Bitcoin slipped into the low 90,000s and briefly broke below 90,000, wiping out its gains for the year. Ethereum followed, trading near multi-month lows.
Other majors weakened too as liquidity thinned and forced selling appeared across the board. Institutions remain interested, but the market is in a “prove it” phase: lower highs, tighter ranges, and traders waiting for clarity before stepping back in.
The long-term story hasn’t changed. The short-term volatility is very real.
Rates, The Fed, And The Data Backlog
The end of the government shutdown left a patchwork of missing economic data, making it harder for markets to read the true state of growth and inflation.
Treasury yields edged slightly lower across the curve, and Fed officials continued floating the possibility of a December rate cut. They emphasized softer labor conditions but also noted that inflation remains above target.
Markets are now trying to balance two competing ideas: easing financial conditions without reigniting an overextended AI bubble. That tension is showing up everywhere.
What You Should Take From Today
Tech isn’t moving as one trade anymore. Alphabet is soaring while other giants pull back. Treat them as individual businesses, not interchangeable market leaders.
Volatility isn’t a warning sign, it’s a natural reset after an almost uninterrupted AI-driven melt-up. This is where strong balance sheets usually stand out.
Crypto is in shakeout mode. Long-term conviction matters more than ever, but position sizing matters even more.
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Final Word
Today’s action looked rough on the surface, but beneath the indexes the story was more layered. Alphabet proved investors still pay for real earnings power. Crypto reminded traders that leverage cuts both ways. And the Fed continues walking a very thin line: supportive enough to avoid recession, restrained enough to avoid another asset frenzy.
The smart move today isn’t predicting the next day’s move. It’s keeping your watchlist organized, compounders, cyclicals, and pure speculation, so you always know why you own what you own.