Asia had a tough day. South Korea fell 8.2%, Japan -4.5%, China -2.1%, Taiwan -3%, all due to concerns about AI valuations. This weakness appears to have been driven by price increases. apple () for its computers due to rising memory chip pricesexpect a domino in tech products.

There are concerns that the costs of building AI will remain high.While there are increasing reports that users of AI solutions priced in tokens are being put off unlimited usage due to high costs, and Switching to weaker but much cheaper AI alternatives, such as China Its token price is 75% lower than the most expensive US bleeding-edge AI offerings. Chatter that is pushing its IPO to next year is seen as a sign that profitability is currently a problem..

The fall continues, down 19% in a week and falling below $69/bbl today. This is despite reports of attacks on ships in the Strait of Hormuz for not following Iran’s instructions. There has been little news about the negotiations between the US and Iran. Success is currently being measured by oil prices.

Interest rates are following oil shortages.down 5bps and down 2bps. 2-year is down 15bps in a week, 10-year is down 12 bps.

Dip buyers appeared this morning, driving the market back to flat. The tech is still weak, as are the speed names. This is more of a technical correction than a market correction.with the tech-light index up and the tech-heavy index down for the past month. A classic reversion to the mean, with concerns about an AI bubble. The trend remains positive.