Wall Street rebounded on Monday, recovering part of last week's steep losses as investors grew more confident about risk assets amid encouraging signs from Washington that the record-long government shutdown may soon conclude.
U.S. consumer sentiment plunged to its lowest since 2022, yet wealthy Americans grow more optimistic—highlighting a deepening K-shaped economy driven by AI disruptions, layoffs, and a booming stock market.
Risk-off sentiment dominated Wall Street on Friday, with selling pressure in AI-linked names intensifying and pushing technology stocks toward their worst week since April.
Wall Street is suddenly fixated on valuations again, with the Shiller CAPE—an inflation-adjusted, 10-year earnings metric—at the center of renewed caution across investor conversations.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Wall Street bounced back Wednesday after Tuesday's sharp selloff in AI-driven stocks, as investors bought the dip amid solid corporate earnings and growing signs that the Federal Reserve may be nearing another interest rate cut.
