In China, the AI bubble has burst

finance.yahoo.com

14 points·smurda··4 comments

I don't think we're in a bubble yet for AI. We've only really reached the software engineering market, and even then it's not permeated throughout every software engineering firm. There are so many other engineering disciplines to accelerate!

How about now?

Japan's Nikkei Poised to Enter Bear Market as AI Selloff Deepens - https://www.bloomberg.com/news/articles/2026-11-06/japan-s-n... - November 6th, 2026

Deepest US Stock Plunge Since Covid Leaves Virtually Nowhere to Hide - https://www.bloomberg.com/news/articles/2026-11-05/worst-us-... - November 5th, 2026

Nasdaq, S&P 500 Suffer Biggest Market Cap Losses on Record - https://www.wsj.com/livecoverage/stock-market-today-dow-sp-5... - November 5th, 2026

Chip stocks slaughtered as Wall Street suffers worst post-midterm day since 1896 - https://finance.yahoo.com/markets/article/chip-stocks-slaugh... - November 5th, 2026

https://www.nasdaq.com/market-activity/index/ndx

https://news.ycombinator.com/item?id=50265632, https://news.ycombinator.com/item?id=50122646 [scoreboard]

What are the ramifications for the US AI market? The "Magnificent Seven" tech giants account for roughly 35% of the S&P 500 index. A domestic market correction is coming, it's only unsure how many trillions in equity value could get wiped out.

You've either prepared by hedging and/or previously rebalancing away from US equities and the S&P500, or you're going to experience a drawdown due to repricing towards reality. Wins for some, sadness for the rest.

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