Good morning, investors. US stocks just logged one their worst days in over a month as each of the major indexes turned negative and Big Tech took a hit.

Even so, the smartest market-watchers I know maintain that the same bullish tailwinds that have fueled stocks all year are still in place.

The AI trade isn’t running out of juice just because stock prices are falling. 

One day after touching a record high, the Dow tumbled more than 600 points. Meanwhile, AI heavyweights like Nvidia, Alphabet, Broadcom and AMD all closed lower on Thursday.

These moves track with the volatility of the last several weeks.

But as Opening Bell Daily readers know, bubble fears have picked up in November even as the demand story underpinning AI becomes more robust. 

Indeed, the fact asset prices haven’t climbed despite strengthening fundamentals suggests the recent chop is a near-term reaction that could reflect any number of things — the lack of economic data during the government shutdown, hawkish Fed rhetoric, corporate layoffs, bearish positions from “Big Short” investor Michael Burry.

Yet, the money managers and strategists I’ve hosted on my show Full Signal over the last week have remained optimistic for the year ahead.

Todd Sohn, an ETF strategist with Strategas, pointed to narrow credit spreads, historic ETF inflows and falling yields in money market funds as evidence the bull market still has room to run. 

Sonali Basak, chief investment strategist at iCapital, said the AI theme remains far from late-cycle, and that the chatter about a “rotation” out of Big Tech is overstated.

After all, Big Tech spending looks set to reach $1 trillion annually soon.

“People have been saying ‘rotation’ all year,” she told me. “[But] markets are still near record highs. How much rotation are you really getting?”

Ryan Detrick, chief market strategist at Carson Group, made a similar case, dismissing dot-com parallels and highlighting earnings strength.

“We don’t think this is a bubble,” Detrick told me. “Those big AI and Mag 7 names are actually making a you-know-what amount of money.” 

It is true that the largest technology stocks now account for nearly 40% of the S&P 500, that Big Tech’s capex plans sound absurd in scale, and that OpenAI’s finances and deal-making remain opaque.

But concentration and ambiguity alone don’t constitute a bubble — particularly when earnings and cash flow continue to grow faster than Wall Street expects. 

Still, these are reasonable points of unease. 

That said, they can coexist with extraordinary and real demand for AI infrastructure.

And in what looks like the early innings of the AI economy, the risks appear tied more to short-term volatility and positioning than any kind of systemic collapse.

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📉 The Fed may not cut rates in December. Odds for a cut in December dropped to about a 50-50, and multiple central bankers have come out with more cautious remarks in recent days. (CNBC)

📊Verizon plans to cut about 15,000 jobs. The stock ticked higher after announcing it’s aiming to reduce costs and stem customer losses. This marks its largest layoff ever. (WSJ)

🤖 CoreWeave stock dropped 8.3% on Thursday. The cloud-computing name is coming off a strong earnings report earlier in that week that saw revenue double in the quarter. (Barron’s)

I sat down with Sonali Basak, chief investment strategist at iCapital, for a deep-dive on the AI trade — the risks and opportunities for investors, the role of private markets, its impact on the K-shaped economy, the outlook for 2026 and more.

📺 Tune in on YouTube, Spotify, and Apple Podcasts.

🗓November 14, 1972: The Dow Jones Industrial Average closed above 1,000 for the first time ever, riding a burst of early-1970s enthusiasm about US business and economic growth

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📰 I’m Phil Rosen, co-founder and editor-in-chief of Opening Bell Daily. I’ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine.

I write our flagship newsletter to prepare you for each trading day — unpacking markets, economic data and Wall Street with analysis you won’t find anywhere else.

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