Hear what market experts are calling, one expert at a time.

Rotation Or Financing Reckoning?

Since Thursday’s warning about AI financing, the selloff has sharpened the question: is money merely rotating, or are business models being repriced? AP reported modest market gains despite AI volatility on Thursday, followed by a technology-led selloff on Friday; the Invesco QQQ Trust (QQQ) finished the week down 6%. Chris Whalen expects further declines because AI companies raising capital and selling services to their investors create a financing loop that cannot indefinitely support valuations. Keith Lerner instead sees a temporary rest for technology while neglected sectors recover, with money eventually returning to tech. The disagreement is about whether broader market strength can absorb the retreat—or whether financing weaknesses make this more than a rotation.