THE S&P 500 IS SLIDING

And there’s more behind it than one ugly day on Wall Street.

Inflation is back at 3.7%, which immediately brings the Fed problem back into the conversation. If prices keep running hot, rate cuts become harder to justify and another hike becomes harder to rule out.

Then there’s AI.

Investors are starting to look much harder at the enormous amount of money being borrowed and spent to build out the boom. CoreWeave is getting particular attention, while chip stocks are being hammered. Micron and Intel are both down more than 5%.

And oil is making everything worse.

Brent is getting close to $110 as supply disruptions push prices higher again.

So Wall Street suddenly has several problems feeding into each other: expensive energy, inflation refusing to disappear, rates that may have to stay high, and an AI trade that investors are no longer willing to believe in quite so blindly.

That’s a nasty combination.

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