TMTB Weekly: Laying out the Market's Mosaic

Happy Sunday. Quite a 2nd week of earnings where the big picture - macro and AI - dominated the conversation and price action.

The NDX finished down ~300bps on the week, which was the largest pullback since the week of Liberation Day. What caused the swoon? To put it simply: A perfect concoction of macro uncertainty (weaker jobs, weak low-end consumer datapoints, gov’t shutdown) & a crowded AI trade with stretched positioning where skepticism around Open AI and its ability to finance its commitments hit a tipping point after OpenAI’s CEO Sarah Frair’s comments (we covered the comments Thursday here).

We thought VitalKnowledge framed the latter issue well:

OpenAI, the most important company in the entire AI universe (in terms of playing the biggest role fueling the data center boom and propagating a message of inexorable progress and AGI inevitability) has been working overtime to both reassure markets about its finances … but if anything, the endless barrage of statements, interview…