Show Notes
US futures are modestly higher after a bruising week that saw nearly $1T wiped from software as AI disruption fears accelerated rotation. Investors are parsing hyperscaler spending, crypto volatility, and whether macro breadth can offset tech pressure.
Software ETFs posted their worst week since 2008 as concerns spread beyond SaaS to mega caps like Amazon (AMZN), which flagged $200B in 2026 AI capital expenditures even as AWS growth improved. The debate is shifting from growth to ROI as capital intensity rises.
Elsewhere, bitcoin steadied below $70K while the dollar slid roughly 9% over the past year, lifting non-US assets. Markets are watching Fed signals, PMI momentum, and whether rotation sticks.
Trending tickers: Amazon (AMZN) on capital expenditures shock; Strategy (MSTR) tracking bitcoin swings; Reddit (RDDT) jumping on earnings and buyback.
Takeaways:
AI fears are forcing valuation resets across software.
Hyperscaler capital expenditures keep rising, delaying ROI clarity.
Rotation favors energy, staples, and select non-US assets.
Crypto remains volatile, not a reliable hedge right now.
Dollar weakness reflects shifting risk perceptions.
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